Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 186 - HC - Income TaxTaxability of amount received for providing amenities and facilities under separate agreement other than the rent agreement under 'Income from House Property' or 'Income from other sources - services being provided under the service agreement are in the nature of staircase of the building, lift, common entrance, main road leading to the building through the compound, drainage facilities, open space in/around the building, air condition facility etc - Held that:- It is found that there are concurrent findings of fact by the CIT(Appeals) as well as the Tribunal that no services are being provided by the respondent to the occupants of its property and that the service charges have to be included as a part of its rental income. The test to determine whether the service agreement was different from the rent agreement would be whether the service agreement could stand independently of the rent agreement. In this case the service agreement is dependent upon the rent agreement as in the absence of the rent agreement there could be no service agreement. Since, these services cannot be separately provided but go alongwith the occupation of the property, therefore, the amounts received as service charges are to be considered as a part of the rent received and subjected to tax under the head 'Income from House Property' - Decided in favor of assessee
|