9911796707
TMI Blog2022 (4) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... to 'Income from House Property'. 3.The appellant craves leave to add to, alter, amend and/or delete all or any of the foregoing grounds of appeal. The appellant prays this Hon'ble Tribunal to delete the addition/disallowance made by the Ld. AO and confirmed by the Ld. CIT(A). 2. The brief facts of the case that the assessee is a partnership firm and is engaged in trading of bidis, safety match boxes and tobacco products for export market and is also engaged in the business of letting out the commercial premises on leave and license basis and providing amenities to the licensees. The assessee has filed the return of income for the A.Y 2017-18 electronically on 31.10.2017 with a total income of Rs. 33,13,58,490/- and the 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) and 142(1) of the Act are issued. In compliance, the assessee has uploaded the details as called for by the A.O. on the e-filling portal of the Income Tax website. The Assessing officer ( A.O.) on perusal of the financial statements found that the assessee has claimed expenses of Rs. 68,18,580/- towards society maintenance char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e mandatorily incurred irrespective of the property let out or vacant.The Ld AR explained the reasons for the claim and substantiated with the submissions read as under: The appellant is a Partnership Firm, has let-out commercial properties on leave and licence. The appellant is a member of the Co-operative housing society. During the year apart from paying the Municipal Taxes, the appellant has also paid Rs,68,18,580/ towards society maintenance charges to the housing society for the maintenance of building including the Lift, providing lighting facility in the common area and cleaning of the common area etc. Society maintenance charge includes non-occupancy charges also which is paid when the property is let-out. The Learned Assessing Officer has disallowed the society maintenance charges of Rs. 68,18,580/- paid by the appellant to the housing society u/s 24 r.w.s Sec.23 of Income Tax Act 1961. The appellant has claimed the said amount of Rs. 68,18,580/paid to the housing society towards the maintenance charges. Rent collected by the licensor includes the society maintenance charges and rent is nothing hut a compensation money paid by the tenant for using the property. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mellow Investment and Finance (P) Ltd (ITA No.1757/Bom/1993 Dt.6th May, 1993) it was decided and held that the society maintenance charges have to be deducted even while determining the annual value of the property under Section 23 of Income Tax Act, 1961. The appellant further humbly submits in the following cases of appellant's sister concerns in the same matter has been decided in their favour by the different Honorable CITs (A) given below- (i) M/s Cresent Realtors Pvt Ltd for Asst. Year 2013-14 CIT(A) -50 has passed favorable order vide dated 06/10/2017 and allowed the payment of society maintenance charges. (ii) M/s Gold Castle Realtors Pvt Ltd appellate order dated 09/09/2014 passed by CIT (A)-38, Mumbai for A.Y 2010-11. (iii) M/s Karnala Mansion Pvt Ltd appellate order dated 14/09/2011 passed by CIT (A)-38, Mumbai for A.V 2004-05, 2005-06 AND 200607. Further the appellant has also relied on the following decisions of the Hon'ble fIAT Mumbai and Delhi l.T.A.T in case of - 1. SHARMILA TAGORE V JOINT COMMISSIONER OF INCOME TAX (2005) 93 TTJ MUM 483 Held, That the society maintenance charges have to be deducted even while determining the annual value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... let out. In that view of the matter, the non- occupancy charges levied by the society will have to be considered under section 23 even while arriving at the estimate of the annual letting value of the property. The Assessing Officer should recompute the annual letting value. 8. Further, the Ld.A.R relied on the decision of Realty Finance and Leasing Pvt Ltd Vs. ITO, [2006] 5 SOT 384(Mumbai) held as under "For the A.Y 1999-20, the AO disallowed the society charges on the ground that the said expenses were not allowable u/s 24 out of the rent received by the assessee. On appeal, the Commissioner (Appeals) upheld the AO view. On second appeal: Held-II It was an admitted fact that the gross rent receipt also included the society charges which were to be paid by the assessee. Therefore, while computing the annual value the amount of rent which actually went into the hands of the owner in respect of leased property should be taken into consideration. As per the provisions of Sec 23 the annual value of property is to be determined on the basis of actual rent received by the owner. Hence, the society charges paid by the assessee in respect of its let out properties were allowabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
