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TMI Blog2011 (11) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... rable items and it cannot be said that nobody would have rented out the building by itself without such items. Thus rightly taxed under the head “Income from Other Sources". Further, clause (ii) of Section 57 mandates that "income from other sources" had to be computed after giving deduction in accordance with provisions of sub-clause (ii) of clause (a) and clause (c) of Section 30, Section 31 and sub-sections (1) and (2) of Section 32 and subject to the provisions of Section 38. Therefore, alternative ground of the assessee is allowed. Decided partly in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... der the head "Income from House property" in all its returns. The A.O., however, in the assessment, treated the amounts received for amenities as "Income from Other Sources" for a reason that there were separate agreements for amenities with respective lessees. 3. Appeals were filed by the assessee before CIT(Appeals). Pleading of the assessee was that the agreements with respective parties were composite one and termination of one agreement resulted in automatic termination of the other. As per the assessee, the amenities mentioned in the respective agreements consisted only normal electrical fittings and furniture which were attached to the property. Assessee also relied on clause 7(f) of the agreements for amenities which mentioned that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Water purifiers 5. Geysers/Water heaters 6. Air Conditioners 7. Ceiling fans/table fans, wall mount fans 8. Crockery set 9. Kitchen set 10. Stores 11. Lamp shades 12. Tube lights and light fittings 13. Television 14. Microwave Ovens 15. Cots Second Property : 1. A/c. (Window A/c) Provided in 12 Rooms 2. 24 Chairs (2 Chairs per room) 3. 1 Tea poi (1 per room) 4. Wardrobe wooden 12 nos 5. Dressing with mirror (12 - 1 per room) 6. Double coat bed 12 Nos. (1 per room with bed and pillows provided) 7. 12 TV sets (colour) (1 per room) 8. Lobby sofa 2 Nos. (5 seater & 8 seater) 9. 1 Ceranite Tea Poi 10. Ceiling fans - 26 nos. 11. Water Heater - 12 nos. 12. Pedestal fan - 2 nos. On a perusal of the above, ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of National NewsPrint & Paper Mills Ltd. (supra) 5. Per contra, learned D.R. supported the orders of the authorities below. 6. We have perused the orders and heard the rival contentions. There is no dispute that there were separate agreements entered into with the concerned lessees - one for renting out of land and building and the other for hiring out the amenities. Of course, as mentioned by ld. CIT(Appeals), clause 7(f) of the agreements for amenities specifically mentioned that it was co-terminus with respective lessees. However, in our opinion, this by itself would not convert the lease of amenities to a lease of immovable property. A look at Section 22 of Income-tax Act, 1961 (in short "the Act") is necessary here. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered under the head "Income from Other Sources", depreciation should be allowed, cannot be brushed aside. Clause (ii) of sub-section (2) of Section 56 clearly specifies that income from machinery, plant or furniture belonging to an assessee which is let on hire, shall be charged under the head "Income from Other Sources" if it is not charged under the head "Profits and gains of business or profession". There is no case for the Revenue here that the rentals of the amenities were to be considered under the head "Profits and gains of business or profession". Further, clause (ii) of Section 57 of the Act mandates that "income from other sources" had to be computed after giving deduction in accordance with provisions of sub-clause (ii) of cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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