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2015 (12) TMI 388 - AT - Income TaxAccrual of income - receipts of amount by sister concerns of the assessee as maintenance charges - whether lease agreement entered into between the assessee company and its tenant was a colourable devise to divert receipts/income to the other company to avoid tax liability in its hands - CIT(A) deleted the addition - Held that:- It is not in dispute that both the assessee company and its subsidiary company, providing maintenance services to the tenant of the assessee’s property, are two separate entities and income-tax assessees. The learned first appellate authority after considering the balance sheets of both the companies has arrived at a finding that the assessee company purchased the land and constructed the bare building at plot No. 7 Sector 127, Taj Express way, Noida and charged rent for the land and bare construction of building under an agreement entered into between the assessee company and the tenants. It is also born out on record that maintenance charges, whatsoever, were paid by the tenant to another company namely, M/s. IHDP Home Interiors Exports Parks Pvt. Ltd. under a separate agreement. It is also not in dispute that the lifts, generator, fire equipments etc. installed in the premises were not owned by assessee company, but by the other company who rendered maintenance services and received the maintenance charges CIT(A) appears to have committed no error while holding that there is no reason to include the income of maintenance charges earned by M/s. IHDP Home Interiors Exports Parks Pvt. Ltd who is a separate assessee, in the hands of the assessee-company. - Decided against revenue
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