9911796707
TMI Blog2016 (1) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessees against two separate orders - dated 25th November 2013 and 26th December 2013 - passed by the Commissioner of Income Tax (Appeals) [hereafter 'CIT(A)'] rejecting their appeals preferred against the respective assessment orders passed in respect of Assessment Year 2009-10. Both the Assessees (Appellants herein) are owners to the extent of 1/3rd share each in the house property bearing no. Block C & D, 14A Factory Road, South of Ring Road, New Delhi. 2. The controversy in the present appeals relates to the receipt of maintenance charges pursuant to an agreement dated 1st April, 2008 entered into between the Assessees and the lessee of the premises in question. According to the Assessees, the maintenance charges are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood condition at all times during the term of the Lease Deed. 2. The First Party shall repair and renew and so far as appropriate, paint, whitewash and color the building in the Demised Premises. 3. The First Party Shall Keep the Demised Premises furnished as it is at the time of handing over possession at all times during the term of the lease deed. The First Party hereby agrees to maintain the fitting and fixture. 4. Payment of Maintenance and service charges The Second Party shall pay to the First Party quarterly charges of Rs. 287500/- 05. In the event of any dispute arising between the parties only the competent courts of Delhi shall have exclusive jurisdiction to try such disputes." 5. The Assessing Officer found that both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly upheld the assessment orders. 8. The Income Tax Appellate Tribunal also did not find any fault with the decision of the AO as well as the CIT(A) and had rejected the appeal. 9. Mr Arijit Prasad, the learned counsel appearing for the Assessee submitted that a careful examination of the maintenance agreement entered into by the Assessees would indicate that the services agreed to be rendered by them were not significant. He submitted that in substance, the maintenance charges were rental income. He contended that the form of the agreements should be ignored and if the substance of the maintenance agreements is considered, it would be seen that the said agreements were not for purposes of rendering any service and the consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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