IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN TUESDAY, THE 24TH JUNE 2008 / 3RD ASHADHA 1930 ITR.No. 290 of 1999() --------------------- AGAINST THE ORDER IN RA.140/1996 IN ITA.328/1994 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPLICANT: ----------- K. BHASKARAN NAIR, CALICUT. BY ADV. SRI.M.RAMESH CHANDER SRI.P.RAGHUNATH RESPONDENTS: ------------- THE COMMISSIONER OF INCOME TAX, COCHIN BY ADV. SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT SRI.GEORGE K. GEORGE, SC FOR IT THIS TAX REFERENCE HAVING BEEN FINALLY HEARD ON 24/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I.T.R. No. 290 OF 1999 -------------------------------------------- Dated this the 24th day of June, 2008 JUDGMENT Ramachandran Nair,J. The question raised is whether the rental income received for the building is assessable under the head "income from house property" or as "income from other source". Petitioner let out lodging house charging separate rent for the building and the furniture. According to the petitioner, for several years the entire income was returned as income from other source and the was being accepted by the assessing officer. However, for the assessment year 1990-91, the assessing officer bifurcated the rent and assessed rental income from building under the head "income from house property" and rental income from furniture under the head "income from other source". Apart from the past assessments consistent with the assessee's claim, we do not think assessee has any case to ask for assessment of rental income from building under the head "income f rom other source" because rental 2 income from building squarely falls under the head "income from house property". If the petitioner's claim is accepted, then rental income received from any furnished accommodation will have to be assessed under the head "income from other source". Since the Income-tax Act provides for assessment after classifying the income under the appropriate head, petitioner cannot ask for shifting of head of income to another merely because the agreement provides for collection of rent for the building along with furniture. We therefore uphold the order of the Tribunal and answer the question referred in favour of the revenue and against the assessee. A copy of this judgment under the seal of the High Court and signature of the Registrar General shall be forwarded to the Income tax Appellate Tribunal, Cochin Bench, Cochin. (C.N.RAMACHANDRAN NAIR) Judge. (V. K. MOHANAN) Judge. kk 3