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TMI Blog2015 (7) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... essed the contractual receipts of ₹ 11,50,000/- as income from other sources and not as income from house property as claimed by assessee - Decided in favour of revenue. - ITA no. 774 /Del/2014,ITA no. 775 /Del/2014 - - - Dated:- 23-7-2015 - Shri S.V. Mehrotra, J. For the Petitioner : Shri S.K. Chaturvedi CA For the Respondent : Shri Robin Rawal JCIT ORDER PER S.V. MEHROTRA, A.M..: These appeals, preferred by separate assessees, are directed against CIT(A) s separate orders dated 25-01-2012 passed in appeal no. 382/2011- 12 and 383/2011-12,respectively, relating to A.Y. 2008-09. Since common issues are involved for consideration, both the appeals were heard together and are being disposed of by this common order for the sake of convenience. ITA no. 774/Del/2012 (Somya Salwan): 2. The assessee, an individual, in the relevant assessment year, derived salary income from three companies, namely, M/s A.K. Govil Company, M/s GPPL and M/s Stem Infra. Besides, the assessee had rental income from business and other sources. She had filed her return through e-filing declaring a loss of ₹ 6,48,890/- The AO observed that AIR information had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by assessee. Ld. CIT(A) confirmed the AO s action. Being aggrieved, the assessee is in appeal before me and has taken following grounds of appeal: Ld. CIT(A)-XXVI, New Delhi has erred by passing ex-parte order u/s 250(6) of the Income Tax Act, 1961 without extending reasonable opportunity to appellant. Ld. CIT(A)-XXVI, New Delhi has erred by confirming the action of Assessing Officer by assessing the amount of maintenance at ₹ 11,50,000/- as income from other sources instead of income under the head House Property along with the amount of rent at ₹ 9,50,000/-. 6. The sole issue in the present appeal is whether the sum of ₹ 11,50,000/- realized by assessee as contract receipt is to be taxed as rental income under the head Income from house property as claimed by assessee or to be treated as income from other sources as held by lower revenue authorities. 7. The submission of ld. counsel for the assessee is that the assessee was deriving the receipt from M/s Stem Infra Services Pvt. Ltd. as rental income and w.e.f. 1-4-2008 annual rent was enhanced which was realized by assessee as maintenance and service charges. 8. Ld. counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 95 ITR 419(Cal), where composite rent is received by the assessee from its tenants it should be split up and the amount attributable to the building only should be computed under section 9(1) of the Indian Income-tax Act, 1922, while the amount attributable to the amenities provided by the assessee to the tenants should be assessed u/s 12 of the Act. Therefore, in order to find out the true nature of receipt received by assessee as maintenance and service charges, agreement dated 26-12-2006 as amended by addendum dated 1-4-2008 has to be considered in entirety. As regards the maintenance and service charges, clauses 16 17 of agreement dated 26-12-2006 read as under: 16. To Pay actual maintenance and service charges in respect of the above premises directly to the maintenance Society of the building (in addition of the monthly rent). 'Such payments shall be deemed full settlement of the Lessee's Obligation -towards any charges or common facilities like running cost of lifts, lighting, common space, staircase, ground cleaning, maintenance of lawns or parking etc. Any enhancement of the same shall be borne by lessee. 17. The said maintenance charges shall be pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cannot be accepted. Ld. counsel has relied on the decision in the case of Suguna Kaur Vs. ACIT (ITA no. 4117/del/2012), wherein the facts were as under:- 3. During the assessment proceedings, the Assessing Officer noted that assessee has shown rental income of ₹ 1,56,48~0001-,. Assessee has purchased the property Unit 1 2, Ground Floor, Lower Parel, Mumbai in May, 2008 and 'let it out to the ICICI Prudential Life Insurance Company Ltd. Assessee has, made two separate agreements for leasing out of the property. First agreement 'is for the leasing out of the house and second agreement is for provision of amenities and services . The company has to pay to the assessee a sum of RsA,50,0001- per month for the provisions of amenities and services and a sum of ₹ 3,20,0001- @ per month for the rent of the property. Original computation of income from Mumbai property as submitted by the assessee is as below :- Income from letting out of Mumbai property ₹ 69,54,667/- Income from services ₹ 86,93,333/- Total ₹ 1,56,48,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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