Section 23 of the Income-tax Act, 1961 - Income from house property - Annual value (Interest free loans)

IT : Where assessee let out its hotel premises, in view of fact that apart from rent assessee also received interest free loan from tenant which had no nexus with leasing of property, notional interest on said loan could not be included while computing ALV of property
IT : Where letting out of furniture and fixture was incidental to letting out of hotel building, rental income derived in respect of same was to be taxed as 'income from house property'
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[2015] 55 taxmann.com 537 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'B'
Care Institute of Medical Sciences Ltd.
v.
Deputy Commissioner of Income-tax, Circle-1 (2), Hyderabad*
B. RAMAKOTAIAH, ACCOUNTANT MEMBER
AND SAKTIJIT DEY, JUDICIAL MEMBER
IT APPEAL NO. 441 (HYD.) OF 2012
[ASSESSMENT YEAR 2007-08]
JANUARY  30, 2015
Section 23 of the Income-tax Act, 1961 - Income from house property - Annual value (Interest free loans) - Assessment year 2007-08 - Whether where assessee let out its hotel premises, in view of fact that apart from rent assessee also received interest free loan from tenant which had no nexus with leasing of property, notional interest on said loan could not be included while computing ALV of property - Held, yes [Para 11] [In favour of assessee]
Section 22, read with section 28(i), of the Income-tax Act, 1961 - Income from house property - Chargeable as (House property v. Business income) - Assessment year 2007-08 - Whether where letting out of furniture and fixture was incidental to letting out of hotel building, rental income derived in respect of same was to be taxed as 'income from house property' and not as business income - Held, yes - [Para 15] [Partly in favour of assessee]