9911796707
TMI Blog2020 (9) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant facts are that the assessee company, during the year under consideration, leased out the assets along with Plant and Machinery to Little People Education Society for leasing out the business asset along with the facilities/services/equipment and according to the agreement for leasing out the premises along with all the infrastructure, the assessee leased out the entire area of the building along with the facilities including diesel generator, electric panel, air conditioner, lifts, service to replace/repair the lighting equipment, firefighting equipment, and also the other services including housekeeping, horticulture and landscaping and water supply with water pumps and sump pumps. 3. The initial agreement was for three years fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied to underassess the income chargeable to tax and therefore, the income chargeable to tax had escaped assessment due to incorrect treatment of the income received from the house property. Assessment was therefore, reopened by issuing notice under section 148 of the Act. By order dated 30/5/2014 passed under section 143(3)/147 of the Act, learned Assessing Officer disallowed some part of business expenses and accepted the income from house property as declared, and concluded the assessment at Rs. 1,38,40,710/-.Simultaneously, the assessing officer initiated and concluded the penalty proceedings under section 271(1)( c ) of the Act. 6. Aggrieved by such an action of the learned Assessing Officer, assessee preferred an appeal before the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts for letting out the demised premises and also the service provided coupled with hiring of the equipment, and in the alternative to go for separate agreements one for letting out the demised premises and the other for the hiring of equipment and providing certain services. Merely because on earlier occasion the assessee opted to go for the composite remuneration, it does not prevent the assessee forever not to let out the premises separately from hiring the equipment and providing services on a separate remuneration. He submitted that the Revenue cannot dictate the way in which the assessee had to conduct its business, but the Revenue can only probe into the income and expenditure declared by the assessee. 9. Per contra, it is the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d panel, air conditioner with the chillers, lifts, lighting, firefighting equipment, housekeeping, horticulture and al landscaping, water supply etc. for an initial period of three years, which could be extended further two more terms on increase of 15% of the last paid rent. During such period, the amounts were received on a composite basis and it was treated as income from business.Subsequently, however, the assessee claims to have bifurcated the income into two heads, namely, some income has been shown under the head "income from business property" and secondly, under the head "income from business" (high charges) by way of a separate agreement. According to the Ld. CIT(A) this bifurcation is a deviation from the regular treatment by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y one for letting out the demised premises and another for the services and hiring of the equipment. Equipment may be inseparable from the building, but the Revenue cannot force the assessee to provide any services or to hire the equipment along with letting out the property. It is always open for the assessee not to provide the services or not to hire the equipment, while letting out the demised premises. Whether or not such services could be provided or the equipment could be hired independently, is the prerogative of the assessee and the lessee. When it is possible for the assessee to provide or not the services and to hire or not the equipment, then it is equally the prerogative of the assessee to provide them at a separate cost. Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
