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TMI Blog2017 (1) TMI 1755X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the action of the Assessing Officer in assessing the income from letting of the commercial space, maintenance and hire charges under the income from house property as against the income from Business and Ld. CIT(A) erred in confirming the disallowance of Rs. 2,90,702/- under provisions of section 14A of the Act r.w.r. 8D of the Income Tax Rule . 2. The Brief facts of the case are that the assessee company is in the Business Activity of Hotels and Hiring Commercial Complex and filed the Return of income on 30.09.2012 with total income of Rs. 5,82,59,360/- and Return of income was processed u/s. 143(1) of the Act. Subsequently, the case was selected for scrutiny and notice u/s. 143(2) was issued. In the course of assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of common facilities and amenities, maintenance of equipment, insurance, electricity charges, airconditioning, security charges, maintenance of gardens, lifts, pump-sets etc., and any other services or facility provided by property manager. With these above findings, the Assessing Officer treated total rental income of the assessee under income from House property and also disallowed u/s. 14A r.w.r. 8D Rs. 2,90,702/- and passed order u/s. 143(3) dated 30.03.2005. 3. Aggrieved by the order, assessee filed an appeal with the CIT(A) . In the appellate proceedings Ld. AR reiterated the submissions made before Assessing Officer and the written submissions filed. The Ld. CIT(A) considered the arguments and the findings of the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. ITA No. 402/Mds/2013, ITA No. 1095/Mds/2014 and ITA No. 2215 & 2216/Mds/2015 dated 01.06.2016, where it was held at Page 14 Para 10 read as under: "10. We have considered the facts of the case in the light of the judgment of Apex Court in Chennai Properties and Investments Ltd. (supra). It is not in dispute that apart from letting out the property, the assessee is maintaining common area, lift operation, providing security, maintenance of waiting hall, meeting hall, etc. These activities are carried on in a systematic and regular manner. Therefore, the service provided by the assessee in a systematic and regular manner would amount to business activity. The rental agreement entered into by the assessee does not bifurcate the rent for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03-04, the orders of the lower authorities for assessment years 2010-11, 2006-07 and 2009-10 are set aside and the Assessing Officer is directed to assess 75% of the rental income received by the assessee as income from house property and 25% as income from business after allowing all applicable expenditure as per the provisions of law." We respectfully following the co-ordinate bench decision direct the Assessing Officer to assess 75% of the income of the assessee as income from house property and 25% as income from Business and allow the related expenditure and partly allowed the ground of the assessee. 6. We find the Ld. AO made disallowance u/s. 14A of the Act by fixed percentage 0.5%. Whereas, the Ld. CIT(A) considered these facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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