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TMI Blog2022 (7) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of the rent received by the assessee can only be made with the rent charged to other tenants, who are also statutory tenants, of that building - As pertinent to note that rent charged to Drishti Advertising Pvt. Ltd. was at the rate of Rs. 2.40 per square feet for an area of about 1000 sq. ft. On the other hand, M/s Bullworker Pvt. Ltd. was paying rent at the rate of Rs. 2.06 per square feet for an area of about 4440 sq. ft. The area given on rent to M/s Bullworker Pvt. Ltd. was much more than the area given on rent to Drishti Advertising Pvt. Ltd, vide agreement dated 20/01/2010, and, therefore, the same justifies the difference in the amount of rent received from the aforesaid 2 entities. In addition to above, it is evident from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 11, inter-alia, in respect of rent received from Drishti Advertising Pvt. Ltd. Accordingly, ground raised in assessee s appeal is allowed. - ITA No. 3009/Mum./2016 - - - Dated:- 13-7-2022 - Shri Pramod Kumar, Vice President, And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Dr. K. Shivaram, Sr. Adv And Ms. Nilam Jadhav For the Revenue : Shri T. Shankar, Sr. AR, CIT ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 08/02/2016, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals) 1, Mumbai [ learned CIT(A) ], for the assessment year 2010 11. 2. The pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that property of the assessee trust is under possession and use by the company M/s. Drishti Advertising Pvt. Ltd, in which trustees are interested and is excluded person under section 13(3) of the Act. Accordingly, assessee was asked to show cause as to why the trust is not covered within the provisions of section 13(1)(c)(ii) read with section 13(2)(g) and therefore the exemption under section 11 of the Act be not denied. In reply, assessee submitted that Drishti Advertising Pvt. Ltd. was already a tenant of the trust from 1994 in respect of an area of about 2000 sq ft and the balance area on the 13th floor, access to which was through the premises of Drishti Advertising Pvt. Ltd, was given on rent by registered tenancy agreement dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble premium of Rs. 41 lakh from Drishti Advertising Pvt. Ltd was not taken into account by the lower authorities. The learned Senior Counsel further submitted that the rent charged to Drishti Advertising Pvt. Ltd. is higher than the rent charged for grant of tenancy of areas in possession of the trust. The learned Senior Counsel also submitted that in subsequent assessment years Revenue has accepted assessee s claim in scrutiny proceedings. 7. On the other hand, Shri T. Shankar, learned Departmental Representative ( learned DR ) submitted that the claim now made before the Tribunal was not made before the Assessing Officer as well as the learned CIT(A) and the assessee merely stated that amount of Rs. 41 lakh is an adequate compensation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said 1000 square feet, as it was accessible only to the existing office of Drishti Advertising Pvt. Ltd, the request was considered by the trustees and an amount of Rs. 41 lakh being an adequate compensation for grant of tenancy rights was negotiated and agreed upon. As a result, the trust granted tenancy for the balance of about 1000 sq.ft. of office space to Drishti Advertising Pvt. Ltd. by registered tenancy agreement dated 02/01/2010 (forming part of the paper book) on the payment of premium Rs. 41 lakh and a monthly rent of Rs. 3485. The Assessing Officer denied the exemption under section 11 of the Act, inter-alia, only on the basis that the property of the trust is under possession and use by a company Drishti Advertising Pvt. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . in respect of the aforesaid tenancy, over and above the agreed rent, and only considered the rent paid by Drishti Advertising Pvt. Ltd. Further, while determining the rent of any property / premises, area / location / access / amenities, inter-alia, are taken into consideration. In the present case, it has not been denied that the about 1000 square feet office space on the balance of 13th floor, which was given on rent to Drishti Advertising Pvt. Ltd. had access only through the premises of Drishti Advertising Pvt. Ltd. Further, Revenue has also not denied the claim of assessee that the trust office and records were continued to be maintained from the office of Drishti Advertising Pvt. Ltd. As regards the submission of learned DR that mar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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