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TMI Blog2022 (1) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure incurred in earning income under the head other sources has to be allowed as a deduction. There is no basis to conclude that the amounts paid by the tenant of 7th and 8th floor is attributable to the entire property and therefore part of the same which is not attributable to 7th and 8th floor maintenance should be disallowed proportionately. The amounts collected from the two tenants was paid over by the Assessee to PPMSL and in such circumstances, was to be allowed as expenditure, when admittedly services were rendered by PPMSL. We find no legal or factual basis to support the disallowance made by the revenue authorities - Decided in favour of assessee. - ITA No.110/Bang/2018 (Assessment Year : 2013-14) - - - Dated:- 22-11-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses (included services in respect of sanitary items, removing of blockage and for refrigeration) salaries and supervision charges paid to employees. According to the AO, the above three expenses/charges paid to M/s Prestige Management and Services Ltd., are not only attributable to the maintenance fee collected by the Assessee .from two of its tenants but also to the rent derived from the properties from other tenants. According to the AO, in respect of other tenants the Assessee does not collect maintenance charges and the same are paid directly by the tenants to PPMSL. The Assessee has been availing the benefit of deduction u/s.24(a) of the Act against rental income offered to tax. The maintenance charges collected from the tenant of 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the maintenance fee. It was pointed out that the Assessee s case was selected for scrutiny for Assessment year 2012-13 and 2014-15 but no such disallowance was made on identical facts and circumstances. 5. The CIT(A) however confirmed the order of the AO by observing that the AO s primary reason for the impugned disallowance was that, the said maintenance services are not exclusively for two floors (7th 8th) but, other floors, where no maintenance charges are collected and against which standard deduction u/s 24 has been claimed under the head 'House Property' income. The AO has therefore made the disallowance of maintenance charges on a 'proportionate basis, in the same proportion as the rent to the total rent and m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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