9911796707
TMI Blog2012 (8) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-00 to carry on the business of developing and dealing in real estate, construction of commercial buildings and letting them out or selling them. In accordance with this object, the assessee constructed a multi-storied building known as the Gateway Tower in DLF City, Gurgaon. The building was let out to various tenants and in the relevant assessment year the assessee earned rental income of Rs. 5,23,77,351/-. The rental income, after claiming the allowable deductions as per Section 24 of the Income Tax Act, 1961 was declared under the head "income from house property". In the course of the assessment proceedings, the Assessing Officer examined the lease documents and other relevant details and noted that the tenants were paying maintenance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l further held that under Section 23(1) of the Act, only the rent received or receivable was taxable and nothing more. The Tribunal noted that the assessee was not charging any maintenance charges from the tenants nor was it providing any services by way of maintenance of the common areas and facilities and therefore nothing was assessable in its hands as maintenance charges forming part of the rent. The Tribunal also examined the clauses in the lease agreement and noted that the following clause was relevant : "It is clarified that at present various services, facilities and civic amenities in DLF City where Demised premises/said plot/said building are located are being maintained by DLF Service Limited (herein after referred to as DSL). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o prove that the entire transaction was the result of a collusive arrangement to divert the income which was in truth and fact earned by the assessee. The arrangement between the tenants and DLS has not been impeached and in our opinion also there are no materials to question the same on the ground of collusion. The legal principle involved admits of no doubt. The assessee being the owner of the property, is assessable under Section 22 only in respect of the annual letting value of the same. The services for maintenance of the common areas and facilities were found to have been actually rendered by DLS and not by the assessee. DLS may be part of the same group, but it is a separate corporate entity carrying on business as service provider f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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