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2019 (6) TMI 698 - AT - Income TaxIncome from Fit-Out Hire Charges - business income OR income from house property - AO alleged that there is no direct nexus with so called fixture/feelings/equipments - HELD THAT:- From the perusal of the Rent Agreement dated 30/08/2007, it can be seen that it is with the sole purpose for rent in respect of the entire building to the Multi National company IBM. The Fit Out Agreement dated 18/01/2008 was entered between the parties for the sole purpose of smooth running of the business of the lessee and it is totally a separate legal document. Both these agreements does not have any motive as regards the evasion of the tax aspect. In-fact, when we see the Supplementary Agreement dated 23rd September, 2009, the parties have agreed that the assessee will provide the fixtures in the said premises lease by IBM at a much lower rate than to the estimated cost of ₹ 1,500/-. Thus, in-fact the assessee has disclosed all the materials before the AO and it is not an evasion of tax. The case laws referred by the DR also not relevant as the same are distinguishable in facts. In case of Shambhu Investment there is no separate charges included in the agreement, but in the present case there are two separate agreements and each terms have been expressed in the agreement. Thus, the CIT(A) has rightly considered the income from Fit-Out Hire Charges as business income as held in A.Y. 2008-09. - Decided against revenue.
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