A Frim carries on business in a premises belonges to one of the partners. No rent was paid to the partner for use of the premises. The assessing officer however assessed the partner on the annual value of the property under the head "Income From the House Property" and the CA is not object any thing about this. Is the assessment correct.
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House property
Replies (2)
Yes, the notional rent needs to be considered for the same. The content of the A.O. is correct.
No the ans is wrong.
For the purpose of Section 22 the business carried on by the firm should be regarded as being carried on the all the partners. Thus annual letting value of a building belonging to the assessee which is in the occupation of a firm in which the asssessee is a partner is not includible in income of the assessee under section 22.
plz refer case CIT VS K.M Jagannathan
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