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TMI Blog2011 (6) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 28,29,128/- per month and ₹ 1,69,74,768/- for 6 months period, as Income from House Proper instead of Income from other sources , without appreciating that: a) The assessee deducted TDS on the entire compensation received by assessee company u/s. 194-I, which is in respect of Rent. b) Case Laws pertaining to M/s. Kanak Investment Pvt. Ltd. 95 ITR 419 (CAL), M/s. Model Mfg. Pvt. 159 ITR 270 (CAL) M/s. Sarabhai Pvt. Ltd. 263 ITR 197 (GUJ). 2. The Appellant prays that he order of the ld. CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. Grounds: ITA No.822/M/2010: 1. On the facts and circumstances of the case and Law, the ld. CIT(A) erred in holding that the compensa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . developed a property at Yerawada, Kalayni Nagar, Pune. It became the owner of part of the property so developed consisting of six floors know as HSBC Centre having total carpet area of 1,23,321 Sq. ft. M/s. K.Raheja Pvt. Ltd. gave the aforesaid properties on lease to M/s. HSBC Software Development India Pvt. Ltd. under a lease agreement dated 25/2/2004. The rent payable for the premises was ₹ 11,60,667/- per month. Apart from the above there was another agreement dated 25/2/2004 between the same parties, whereby HSBC Software Development India Pvt. Ltd. the lessee was allowed to use the various amenities that was created in the building leased by K. Raheja Pvt. Ltd. For use of such amenities a sum of ₹ 28,29,128/- per month ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is the owner of space allocated to it. Therefore, the assessee can not in turn give on lease such items independently. Once the assessee has leased the office to HSBC Software Development Centre they are automatically entitled to use these facilities in capacity as occupants. The entire running and maintenance of the premises under consideration is borne by the tenant. Mere splitting of rent into two parts does not mean that income from amenities charges is not connected with letting out of the property. There is no separate letting of the amenities and facilities by the assessee. In fact the facilities are provided by the builder themselves which are a part of the premises let out. Accordingly, the compensation received from the u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ler on the terrace of the building. c. Space on the terrace of the building for putting up Dish Antenna. d. One service lift for the building of 884 Kg. capacity. e. Four lifts of 13 passenger each in the said building. f. Car parking Nos. 100 in stilt an open area compound of the building. g. Scooter parking Nos.209 in stilt and in open area compound of the building. h. Space for Telecommunication tower on terrace for the use of the company. i. Recreational space. j. Fire fighting facilities. 9. It is quite clear that what is let out or leased primarily consists of space for generators, A.C plant, car parking and scooter parking, recreation., in addition, fire fighting facilities and lift have been provided by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as Income from house property . The AO is therefore not justified in treating the income earned through the second agreement as Income from other sources . 7. Aggrieved by the order of the CIT(A) the revenue has filed the present appeals before the Tribunal. 8. We have heard submissions of ld. D.R, who relied on the order of the Assessing Officer. We are of the view that the order of the CIT(A) does not call for any interference. As can been seen from the agreement for providing amenities (the details of which are set out in the earlier paragraph) they are part and parcel of property and forms part of use of the building by the assessee. The amenities cannot be let out without the letting out of the space. Thus the amenities are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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