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2016 (6) TMI 1239 - AT - Income TaxRental income - Income received towards provision of amenities under the head Income from house property - nature of income - let out of property - expenses incurred towards security services and pantry services adjustment - Held that:- The assessee has let out the two storey building to only one tenant. The nature of amenities claimed to have been provided consisted of security services, building maintenance, car parking facility, pantry services. The electricity expenses incurred by the assessee are being reimbursed by the tenant. As notice that the security services and pantry services are not germane to the letting of building, but other services are part and parcel of letting of building. Hence the decision rendered by the Hon’ble Supreme court in the case of Shambu Investments (2001 (3) TMI 77 - CALCUTTA High Court) shall squarely apply to the assessee. Also agree with the Ld D.R that the principle of res-judicata shall not apply to income tax proceedings. Thus the predominantly, the receipts towards amenities are to be considered as part of rental income only. However, as stated earlier, the expenses incurred towards security services and pantry services are not connected to the rental income and hence they should be deducted from the receipts towards amenities. Accordingly the only net receipts after deduction of above said income should be considered as part of rental receipts. Appeal filed by the assessee is partly allowed.
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