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2015 (12) TMI 875 - CESTAT BANGALOREWaiver of pre deposit - inclusion of reimbursement of expenses in the value - allocation of cost of expenses - renting of immovable property - Held that:- Appellant is acting as pure agent. As regards BESCOM, charges actually paid to the BESCOM can be said to be in the nature of pure agent since BESCOM charges are required to be paid by the individual flat/space owners. At this stage, therefore, in the absence of any evidence to show that there were no separate lease agreements for each tenant, at this stage, the claim of the appellant that they acted as pure agent on a prima facie basis has to be accepted. However, as regards the difference of ₹ 95,89,015/-, according to the appellants, this is collected towards generator power by the appellants themselves. This is a facility provided by the leaser to the tenants and there are two ways of collecting the amount. One way would be treating average expenses as part of the rent. The other was would be recovering the expenses on the basis of a calculation. Other than submitting that it can be shown by them that the actual expenses incurred on power generator, depreciation, etc., is less than what has been recovered, no evidence has been produced. This expenditure cannot be considered as expenditure incurred on behalf of the tenant and paid to someone else and therefore, appellant has acted as a pure agent cannot also be a view. In such a situation, it can be said that appellant has not made out a prima facie case in respect of the amount collected on this account of ₹ 95,89,015. Therefore, appellant has to be put to some terms to pay tax on this amount. - Partial stay granted.
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