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2007 (6) TMI 177 - HC - Income TaxIncome derived from letting out the commercial complex - Taxable under head 'Income from Business' or 'Income from House Property' - service-cum-lease agreements - No bifurcation for a portion of the rental receipt - HELD THAT:- It is fairly stated by counsel appearing for the assessees that mere letting out the property and deriving income from it should be assessed only under the head "Income from house property" and also the issue now stands concluded by this court judgment in CIT v. Chennai Properties and Investments Ltd.[2003 (3) TMI 28 - MADRAS HIGH COURT] in favour of the Revenue. Hence we answer the questions in favour of the Revenue, against the assessee. An alternative argument is also advanced that the whole receipt amount should not be assessed under the head "Income from house property" on the ground that certain portion of the amount is related to services provided as per the agreements which are independent ones. It is clear that the assessee-firm has to provide certain services. For the purpose of providing such services, the occupant has to pay a consolidated charge of Rs. 1,200 per month in the case of T.C. There is no dispute regarding the actual services provided by the assessee firms and the Revenue also did not deny the same. The only reason given by the Tribunal is that the assessees failed to substantiate their claims. The profit and loss account as well as balance-sheet were filed before the authorities wherein all the details regarding expenditure as well as receipts were reflected. There is no proper consideration of the details regarding providing services as well as receipt of the same by the authorities below. The authorities ought to have considered the same. If it is necessary, they have to bifurcate a portion of the rental receipt into various heads. In such circumstances, in the interest of justice, we direct the Assessing Officer to consider the details regarding the services provided as well as the amount received for the same and the said receipt amounts derived from providing services may be considered under the head "Income from other sources" or under the head "Income from business" and pass orders in accordance with law after giving opportunity to the assessees. With the above observations, the tax cases are disposed of.
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