- (1.) This appeal under Section 260A of the Income-tax ( Act ), 1961 is at the instance of an assessee and is directed against an order dated 22nd June, 2004, 2 passed by the Income-tax Appellate Tribunal, A Bench, Kolkata, in Income-tax Appeal being ITA No.1724 (Kol) of 2002 for the Assessment Years 1998-99 and 1999-2000 and thereby dismissing the appeal preferred by the assessee. Being dissatisfied, the assessee has come up with the present appeal.
(2.) The only question that falls for determination in this appeal is whether the benefit under Section 22 of the Act, 1961 is available to a co-owner of a house property if part of the said house is occupied for the business of a partnership firm of which the said co-owner is one of the partners.
(3.) The following facts are relevant for the purpose of disposal of the present appeal. a) The assessee is one of the joint co-owners of property being IA and 1B, F, First floor, 101 Park Street, Kolkata. The premises were leased out to M/s. Jayshree Exports, a 100% export unit, in which he is a partner. The assessee has not charged any rent for the said lease from M/s. Jayshree Exports. According to the Assessing Officer, Section 22 of the Act was applicable and accordingly applied the deeming provision and treated the assessee to be in receipt of rental income amounting to Rs.1,78,318/- by relying upon similar rental of the locality. b) Being dissatisfied, the assessee preferred an appeal before the Commissioner of Income-tax (Appeal) and the said authority dismissed the said appeal. c) Being dissatisfied, the assessee preferred further appeal before the Tribunal below and contended that the assessee being a co-owner of the property and the partnership business which is in occupation of a portion of the said property being one in which the assessee as one of the co-owners is a partner, such co-owner is entitled to the benefit of exclusion provided in Section 22.;