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TMI Blog2015 (11) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be said to be necessarily integral part of the rental income. In our view, these are apparently, over and above, the rental income earned by the assessee company, therefore, in our considered view, this income cannot be clubbed with the rental income. There can be different types of arrangements by the land lords with different tenants. Therefore, presuming that this kind of charges, form part of the rental income, in the given facts of the case, would not be fair and justified, in our considered view. Accordingly, it is held that these maintenance charges are not part of the rental income and therefore amount of maintenance charges, received by the assessee, in these facts and circumstances of the case is not part of the rental incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in treating rent for amenities/ common facilities received as rent for letting out of building 1.1 On the facts circumstances of the case the learned CIT (A) erred in disallowing rent for amenities paid to M/ s. Tamilnadu Real Estate Pvt. Ltd. against the rent for amenities/ common facilities received from the tenant. 1.2 On the facts circumstances of the case the learned CIT (A) erred in appreciating the fact that word maintenance charges used is nothing but word used for rent for amenities/common facilities. 2.0 On the facts circumstances of the case the learned CIT (A) erred in levying penalty U / s. 271(1)(c) of the Income Tax Act, 1961. 2.1. The solitary issue raised in this appeal is with regard to trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the same was not claimed as an expense against income for the year. The assessee further submitted that in view of these facts, the society maintenance charges received by the assessee company for ₹ 3,75,280/- should not be taxed as rent. 2.4. However, the Assessing Officer was not satisfied with the response of the assessee. Accordingly, it was held by the Assessing Officer that the rent income has been declared less by ₹ 3,75,280/-. It was further observed by the Assessing Officer that this amount is termed as maintenance charges, but it forms part of the rental income. Accordingly, the Assessing Officer increased the amount of rent by this amount and taxed it accordingly under the head income from house property . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of maintenance. Consequently, it was held by the ld. Commissioner of Income Tax (Appeals) that The Assessing Officer was right in taxing the receipt as rental income and not accepting the assessee s plea to treat it as income from other sources and allowing the related expenses against such income from other sources. 2.6. Before us, the ld. counsel has argued that the action of the ld. Assessing Officer was unfair and unjustified in treating the amount of maintenance charges received as part of rental income. It was further submitted that in any case, the action of the lower authorities was highly unjustified in not giving the benefit of deduction of payment made by the assessee on account of maintenance charges. It was submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause is reproduced hereunder:- The Tenant hereby covenants and undertakes to pay maintenance charges at ₹ 5 per square feet per month for use of all common facilities (i.e.) security, cleaning, common lighting, generator set, landscaping, fire fighting, lift maintenance, water supply and other utilities etc. It is understood by the Tenant that the above does include water charges, if any, payable to the Board directly/Landlord/ Maintenance company, which the Tenant, unless validly disputed convenants and undertakes to pay without any default. 2.8. A perusal of above clause clarifies that the maintenance charges are different from the nature of rent. These charges are not paid for the users of the property as such. These c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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