2012 (11) TMI 186

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..... ('the Act') challenges the order dated 09.09.2010 of the Income-tax Appellate Tribunal ('the Tribunal') relating to the assessment year 2004-2005. The appellant has raised the following questions of law for the consideration of this court. (a)  Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in holding that compensation of Rs.1.23 crores receiv .....

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..... as Rs.123 lacs. The respondent claimed both rent income and service charges as '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 ancilla .....

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..... any were being provided by the society. To reach the above finding, the Tribunal relied upon the decision of this court in the matter of CIT v. Bhakhtawar Construction (P.) Ltd. [1986] 162 ITR 452/27 Taxman 7 to conclude that mere spitting of rent is not decisive and each case has to be examined on its own facts to determine whether the service charges are a part of the rent. Therefore, the Tribu .....

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..... f 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 ag .....

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..... e considered as a part of the rent received and subjected to tax under the head 'Income from House Property'. 7. In view of the concurrent finding of facts by the Commissioner of Income Tax (Appeals) and the Tribunal, we find that no substantial question of law arises. Consequently, the appeal is dismissed on both questions of law, as formulated by the Revenue.  
Case laws, Decisions, J .....

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