9911796707
TMI Blog2023 (6) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... s.7,70,688/- received from tenants as Income from House Property and erred in upholding allowing of Standard Deduction @30% only against the same and further erred in upholding disallowance of all the expenses incurred against the Maintenance Income. 2. That on the facts and circumstances of the case, the Ld. CIT (A) further erred in upholding disallowance of all the expenses claimed against Maintenance Income under the head "Profits and Gains from Business & Profession" without appreciating the fact that all the expenses incurred are otherwise allowable to the appellant company as necessary for maintaining the status of the appellant company as a company." 3. As can be seen from the grounds raised, the main dispute between the parties i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r maintenance charges. He submitted, the maintenance charges cannot be treated as part of rental income since, they are for actual expenses incurred by the assessee for certain facilities provided to the tenant. In support of his contention, learned counsel for the assessee relied upon following decisions : (i). M/s. Kirloskar Systems Ltd. vs. ACIT (ITAT, Bangalore Bench)(ITA Nos. 720 & 721/Bang/2011- order dated 29.11.2013). (ii). CIT vs. Model Manufacturing Co. Pvt. Ltd. (1986) 159 ITR 270(Cal.) (iii). CIT vs. Kanak Investments (Pvt) Ltd., (1974) 95 ITR 419 (Cal). 6. Learned departmental representative strongly relied upon the observations of the Assessing Officer and learned Commissioner (Appeals). 7. We have considered rival sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied upon by the ld. Counsel for the assessee support this view. It has also been brought to our notice by the ld. Counsel for the assessee that this is the only year, in which, the Assessing Officer has assessed the maintenance income under the head 'income from house property'. In view of the aforesaid, we hold that the maintenance income received by the assessee has to be treated as income from business. Since, the departmental authorities have not raised any doubt regarding expenses incurred against maintenance charges, the same has to be allowed. Accordingly, we decide the grounds in favour of the assessee.
8. In the result, appeal is allowed.
Order pronounced in the open court on 29/05/2023. X X X X Extracts X X X X X X X X Extracts X X X X
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