2023 (6) TMI 340

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..... upon by assessee support this view. As per assessee that this is the only year, in which, the AO has assessed the maintenance income under the head income from house property . 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 - Decided in favour of the assessee. - ITA No. 2375/Del/2017 - - - Dated:- 29-5-2023 - Shri G.S. Pannu, President And Shri Saktijit Dey, Judicial Member For the Assessee : Sh. Amarjit Singh, C.A. For the Revenue : Sh. Virendra Singh, Sr. DR ORDER PER SAKTIJIT DEY, J.M.: This is an appeal .....

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..... ilding owned by it. In course of assessment proceedings for the impugned assessment year, the Assessing Officer noticed that in the previous year relevant to assessment year under dispute, the assessee had offered rental income of Rs.73,21,536/- as income from house property. Whereas, the maintenance income of Rs.7,68,688/- received from the building let out has been treated as business income. The Assessing Officer was of the view that since, the rental income as well as the maintenance income was received by the assessee from the building let out, they cannot be given different treatment, only because, the assessee has received such income under two separate agreements. Thus, ultimately, he concluded that the maintenance income received b .....

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..... very same day, the assessee has executed two separate agreements for the first and second floor of the same building towards maintenance and certain common facilities provided to the tenants such as lift from the main lobby to the leased out portion, uninterrupted power supply, provision for clean drinking water from water tank, access to staircase/landing, sufficient lighting arrangement, up-keeping the common area and common drainage, a generator set in running condition etc. For providing such facilities, the assessee received monthly service charges of Rs.26,760/- for each floor. Thus, as can be seen from the aforesaid facts, the maintenance charges are no way connected to the rental income. Rather, they are for certain additional facil .....

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