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TMI Blog2012 (11) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... f its property and that the service charges have to be included as a part of its rental income. The test to determine whether the service agreement was different from the rent agreement would be whether the service agreement could stand independently of the rent agreement. In this case the service agreement is dependent upon the rent agreement as in the absence of the rent agreement there could be no service agreement. Since, these services cannot be separately provided but go alongwith the occupation of the property, therefore, the amounts received as service charges are to be considered as a part of the rent received and subjected to tax under the head 'Income from House Property' - Decided in favor of assessee - IT APPEAL NO. 1089 OF 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'Income from House Property' and offered the same for tax as 'Income from House Property'. The Assessing Officer by his order dated 29.09.2006 accepted Rs.492.73 lacs as 'Income from House Property'. However, so far as service charges were concerned, the Assessing Officer held that these service charges were for ancillary services and therefore assessable under the head 'Income from Other Sources' and not as 'Income from House Property'. 3. In Appeal, the Commissioner of Income Tax (Appeals) allowed the respondent's appeal by following the order of the Tribunal for assessment year 2001-2002. The Tribunal in its order for assessment year 2001-2002 upheld the finding of fact of the Commissioner of Income Tax (Appeals) that there was no se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merits. 6. We find that there are concurrent findings of fact by the Commissioner of Income Tax (Appeals) as well as the Tribunal that no services are being provided by the respondent to the occupants of its property and that the service charges have to be included as a part of its rental income. The aforesaid finding of the Tribunal is on the basis of the order of this Court in the matter of Bhakhtawar Construction (P.) Ltd. ( Supra ). The test to determine whether the service agreement was different from the rent agreement would be whether the service agreement could stand independently of the rent agreement. In this case the service agreement is dependent upon the rent agreement as in the absence of the rent agreement there could b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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