Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 800 - AT - Income TaxRental income - Amenity charges received by the assessee in terms of the “Amenities agreement” - income from house property or income from other sources - HELD THAT:- We find that the Hon’ble High Court of Calcutta in the case of CIT Vs. Sambhu Investments Pvt. ltd. 2001 (3) TMI 77 - CALCUTTA HIGH COURT] had observed that where the prime object of the assessee was to let out the portion of the property to various occupants by giving them additional right of using the furniture & fixtures and other common facilities for which rent was being paid, the income derived therefrom would be assessable under the head “house property”. Also confirmed by SC [2003 (1) TMI 99 - SC ORDER] . Accordingly, on the basis of our aforesaid observations, we are of the considered view that the amount received by the assessee for providing the amenities/facilities to the licensee as per the “Amenities agreement”, dated 07.08.2012 was rightly shown by the assessee as its income under the head “house property”. At the same time, we may herein observe that the assessee had claimed to have received gross rent of ₹ 2,17,21,200/- on letting out of the aforesaid property. However, we find that the receipts from the letting out of the aforesaid property and provision of amenities as per the respective “Agreements” works out to an aggregate of ₹ 1,79,26,200/- viz. (i) rental receips: ₹ 67,62,000/- (i.e @ ₹ 5,63,500/- per month); and (ii) compensation/amenity charges: ₹ 1,11,64,200/- (i.e @ ₹ 9,30,350/- per month). We thus in terms of our aforesaid observations restore the matter to the file of the A.O, with a direction to assess the amenity charges received by the assessee in terms of the “Amenities agreement”, dated 07.08.2012 under the the head “house property”. Also, the A.O in the course of the “set aside” proceedings shall verify the reason for the discrepancy in the amount of the gross rental shown - Ground of Appeal No. 1 is allowed for statistical purposes Disallowance u/s 14A r.w.r. 8D - suo motto disallowance shown by the assessee - HELD THAT:- In case the self owned funds of the assessee viz. profit, reserves, surplus and current account deposits are found higher than the investments made in the exempt income yielding assets, then no disallowance under Sec.14A r.w. Rule 8D(2)(ii) would be called for in the hands of the assessee. Our aforesaid observation is fortified by the judgement of CIT Vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] Accordingly, in terms of our aforesaid observations, we direct the A.O to readjudicate the issue pertaining to disallowance under Sec.14A r.w. Rule 8D(2)(ii), keeping in view the judgment of the Hon”ble High Court of Bombay in the case of HDFC Bank Ltd.(supra). A.O shall in the course of the “set aside” proceedings afford a reasonable opportunity of being heard to the assessee.- Ground of appeal No. 2 is allowed for statistical purposes.
|