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TMI Blog2016 (1) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... the said agreements cannot be permitted to claim the said agreements to be sham devices and contend that the substance of the maintenance agreements was different from what was expressly recorded therein. The CIT(A) as well as the Tribunal had taken note of the specific covenants of the maintenance agreements entered into by the Assessee and had concluded that the consideration received pursuant to the said agreements could not be treated as rental income. - Decided against the assessee. - ITA No. 19/2016, ITA No. 21/2016 - - - Dated:- 6-1-2016 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellants : Mr Arijit Prasad, Mr Narendra Kumar Mr Rakesh Kumar, Advs For the Respondent : Mr P Roy Chaudhuri, Senior Standing Counsel wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ongwith Mrs Parul Govil (wife of Mr Abhishek Govil, the appellant in ITA No. 19/2016). Each of them own 1/3rd undivided share in the house property. 4. The said house property has been leased to one M/s NE MI Consultants Engg. Pvt. Ltd. The three owners had executed the lease deed, leasing out the said premises at a monthly rent of ₹ 2,37,500/-. In addition, each of the lessors also entered into similar but separate agreements dated 1st April, 2008 for providing maintenance services with respect to the house property (hereafter 'maintenance agreement'). The relevant terms of the maintenance agreement are reproduced below:- The First Party agrees and undertakes to provide the maintenance and other regular services t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Assessees claimed that both the receipts, i.e. on account of rent as well as the maintenance charges, were liable to be taxed under the head of income from house property. The Assessees also claimed standard deduction under Section 24 of the Act on the income by way of rental as well as the receipts on account of maintenance charges. The AO rejected the claim of the Assessees to treat the receipts on account of the maintenance agreement as rental income and taxed the same under the head of income from other sources. Accordingly, the statutory deduction under Section 24 of the Act on the maintenance charges was also disallowed by the AO. 7. Aggrieved by the assessment orders, the Assessees filed the appeals before CIT(A). The CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments also indicates that the said charges were payable as consideration for providing services mentioned therein. Further, TDS was also deducted treating the said charges as payments to a contractor. The Assessees who are signatories to the said agreements cannot be permitted to claim the said agreements to be sham devices and contend that the substance of the maintenance agreements was different from what was expressly recorded therein. The CIT(A) as well as the Tribunal had taken note of the specific covenants of the maintenance agreements entered into by the Assessee and had concluded that the consideration received pursuant to the said agreements could not be treated as rental income. 11. We find no infirmity with the aforesaid view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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