Neelam Kaur Chhabra, New Delhi V. ITO, New Delhi

ITA 4854/DEL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81493 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 04-08-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 12-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER AND SHRI ABY T. VARKEY, JUDICIAL MEMBER ITA NO.4854/DEL./2012 (ASSESSMENT YEAR : 2009-10) SMT. NEELAM KAUR CHHABRA, VS. ITO, WARD 18 (2), 92, JAGRITI ENCLAVE, NEW DELHI. DELHI 110 092. (PAN : AAEPC7844A) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ALOK GUPTA, CA REVENUE BY : SHRI SUNIL SHARMA, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF CIT (APPEALS)-XXI, NEW DELHI DATED 18.07.2012 FOR THE A SSESSMENT YEAR 2009- 10. 2. THE ASSESSEE, SMT. NEELAM KAUR CHHABRA AND HER H USBAND, SHRI P.S. CHHABRA PURCHASED A PROPERTY AT ADITYA MEGA MALL, C BDT, SHAHDARA, DELHI- 110 032. THIS PROPERTY WAS LET OUT DURING THE RELE VANT YEAR AND IN THE RENT AGREEMENT, THE RENT WAS TO BE SHARED 50% EACH. HOW EVER, THE FULL RENT WAS GIVEN TO SMT. NEELAM KAUR CHHABRA AND DEPOSITED IN HER ACCOUNT AND TDS WAS ALSO DEDUCTED ON THIS AMOUNT. IN THE RETURN OF INCOME, ASSESSEE AND HER ITA NO.4854/DEL./2012 2 HUSBAND DECLARED 50% RENTAL INCOME FROM THIS PROPER TY AND PAID TAX ACCORDINGLY. THE HUSBAND OF THE ASSESSEE, SHRI P.S . CHHABRA DID NOT CLAIM CREDIT FOR THE TDS DEDUCTED ON THE RENT. THE ASSES SING OFFICER HELD THAT THIS WHOLE RENTAL INCOME IS TO BE TAXED IN THE HANDS OF ASSESSEE. THE CIT (A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE READ AS UNDER :- 1. THE APPELLANT DENIES THE ADDITION OF RS.3,56,42 2 AS CONFIRMED BY THE HON'BLE COMMISSIONER OF INCOME TAX (APPEALS) - XXI, NEW DELHI. 2. THE ADDITION OF RS.3,56,422 CONSISTS OF ONE HALF INCOME FROM HOUSE PROPERTY RECEIVED DURING THE YEAR FROM DR. SHIKHAS NUTRI-HEALTH SYSTEMS PVT. LTD., WHICH BELONGS TO THE HUSBAND MR. P.S.CHH ABRA. 3. THE HON'BLE COMMISSIONER OF INCOME TAX (APPEALS) HAS ACCEPTED IN HIS ORDER THAT WE HAVE FILED ALL THE RELEVANT PA PERS INCLUDING TITLE DEED AND RENT AGREEMENT ABOUT THE PROPERTY AT ADITYA MEG A MALL, CBDT, SHAHDARA, DELHI-110032. 4. THE HON'BLE COMMISSIONER HAS CONSIDERED THAT 100 % PROPERTY BELONGS TO THE ASSESSEE MRS. NEELAM KAUR CHHABRA AN D NOT 50% TO HER AND OTHER 50% TO HER HUSBAND MR. P.S.CHHABRA ONLY ON TH E GROUND THAT THE STAMPING OF THE SALE DEED SHOWS' 'FIRST PARTY: MESSERS AGARWAL ASSOCIATES PROMOTERS LTD. SECOND PARTY: NEELAM CHHABRA AND OTHER STAMP DUTY PAID: NEELAM CHHABRA AND OTHER WHEREAS IN THE CONTENTS OF THE SALE DEED IT IS CLEA RLY MENTIONED THAT THE ONE HALF OF THE PROPERTY BELONGS TO MRS. NEELAM KAUR CH HABRA AND OTHER HALF TO HER HUSBAND MR. P.S.CHHABRA. WE MAY MENTION THAT THIS IS COMMON WAY OF WRITING O N THE STAMP PAPER FOR THE SAKE OF BREVITY THAT THE NAME OF THE FIRST HOLD ER OF THE PROPERTY IS WRITTEN AND THE OTHER NAMES ARE MENTIONED 'OTHERS'. THEY DO NOT WRITE NAMES OF ALL THE PURCHASERS WHILE PURCHASING THE ST AMP PAPER. MOREOVER, ONLY THE CONTENT OF THE SALE DEED IS IMPO RTANT WHERE IT IS CLEARLY MENTIONED ABOUT THE NAME OF BOTH THE PURCHASERS. ITA NO.4854/DEL./2012 3 5. ABOUT THE CONDITION ATTACHED TO RULE 37BA(2) OF THE INCOME TAX RULES 1962 IF THEY ARE NOT SATISFIED, ONLY THING TH AT WILL HAPPEN IS THAT THE JOINT OWNER WILL NOT GET THE CREDIT FOR TDS. 6. IN VIEW OF ABOVE WE SUBMIT THAT THERE IS NO REAS ON FOR ADDING THE SECOND HALF OF INCOME BELONGING TO THE JOINT OWNER TO THE INCOME OF THE ASSESSEE WHO IS ONLY 50% OWNER. AT THE MOST THE CR EDIT FOR TDS CORRESPONDING TO THE SECOND HALF OF RENTAL INCOME M AY NOT BE ALLOWED TO THE ASSESSEE. 3. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE. IT I S AN UNDISPUTED FACT THAT THIS PROPERTY WAS REGISTERED IN THE NAME OF ASSESSE E, SMT. NEELAM KAUR CHHABRA AND HER HUSBAND, SHRI P.S. CHHABRA. THE AS SESSING OFFICER DRAW AN ADVERSE VIEW WITH REGARD TO THE MENTIONING BY ESTAM P AUTHORITY ON THE SALE DEED WHEREIN THE SECOND PARTY WAS SHOWN SMT. NEELAM KAUR CHHABRA AND OTHER. IN OUR CONSIDERED VIEW, WHEN THERE IS A CLE AR MENTION OF BOTH THE PURCHASERS IN THE SALE DEED THEN ONLY ON THE BASIS OF SIMPLY MENTIONING BY THE ESTAMP AUTHORITY AS SMT. NEELAM KAUR CHHABRA AND O THER SHALL NOT BE A SUFFICIENT GROUND TO DRAW AN ADVERSE INFERENCE WITH REGARD TO THE OWNERSHIP OF THE PROPERTY. AS PER SALE DEED, SMT. NEELAM KAU R CHHABRA AND HER HUSBAND WERE THE OWNER OF THE PROPERTY AT 50% EACH. THE RENT AGREEMENT ALSO PROVIDED WITH REGARD TO THE RENT TO BE PAID TO THESE CO-OWNERS. THE WHOLE RENT WAS CREDITED IN THE ACCOUNT OF SMT. NEEL AM KAUR CHHABRA AND TDS WAS ALSO DEDUCTED IN HER NAME. HOWEVER, SHRI P .S.CHHABRA HAS DECLARED THE 50% RENT INCOME IN HIS RETURN OF INCOM E AND PAID THE TAXES ACCORDINGLY. IN OUR CONSIDERED VIEW, THE RENTAL IN COME ACCRUED TO SHRI P.S. ITA NO.4854/DEL./2012 4 CHHABRA FROM THE PROPERTY OWNED BY HIM IN 50% SHARE , THEREFORE, SUBSEQUENT ACT OF CREDITING THE RENT TO HIS WIFES ACCOUNT WIL L NOT MAKE ANY DIFFERENCE WITH REGARD TO THE ACCRUAL OF THE INCOME IN THE HAN DS OF SHRI P.S. CHHABRA. THEREFORE, WE HOLD THAT THIS PROPERTY WAS CO-OWNED BY TWO PERSONS IN EQUAL RATIO, VIZ., THE ASSESSEE AND HER HUSBAND. THE REN TAL INCOME HAS BEEN ACCRUED IN THE SAME RATIO TO THEM. SUBSEQUENT ACT OF CREDIT ING THE RENT IN ASSESSEES NAME SHALL NOT MAKE HER LIABLE TO BE ASSESSED FOR T HE RENTAL ACCRUED ON THE HALF SHARE OF THE PROPERTY BELONGING TO HER HUSBAND , SHRI P.S. CHHABRA. SHRI P.S. CHHABRA HAD ALREADY DECLARED THE INCOME IN HIS RETURN. CONSIDERING ALL THESE ASPECTS, WE SET ASIDE THE ORDERS OF THE AUTHO RITIES BELOW AND ALLOW THE APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 6 TH DAY OF AUGUST, 2014. SD/- SD/- (ABY T. VARKEY) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 6 TH DAY OF AUGUST , 2014. TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXI, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.