1979 TAX. L. R. 772 ::(1979) 1 ITJ 376 ::119 ITR 303 ::(1979) 52 Taxation 63

Gujarat High Court

Hon'ble Judge(s): B J Divan C J , C.J. AND B. K. Mehta , J

Income-tax Act (43 of 1961) , S.22— Income from house property - Godowns owned by assesses and used for his business in partnership - Annual letting value of godowns cannot be included in his total income. An individual assessee owner of godowns which are being used by a partnership firm, in which he is a partner, for purposes of business, can claim benefit of the exemption provided in S. 22, in the sense, that the notional or actual income arising from the godowus is not liable to be included in the total income of the assessee. (Case law discussed). (Para 13) The two conditions which must be satisfied before an assessee can claim exemption in respect of the income from his house property under S. 22 are, (i) if the property or a portion of it is occupied by the assessee for the purposes of his own business, professsion or vocation, and (ii) the profits of such business profession or vocation are assessable to tax. If these two conditions are satisfied, the assessee is entitled to claim before the taxing authorities that the income from his house property should not be subjected to tax. In other words, income from house property of an assessee would not be subjected to tax if he is occupying the same for the purposes of his business, profession or vocation the profits of which are assessable t....