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2021 (8) TMI 210 - AT - Income TaxCorrect head on income - Income from revenue operation from common area maintenance charges received from the tenants - income from house property or income from business - HELD THAT:- Assessee claimed that receipts on account of rent as well as maintenance charges were liable to be taxed under the head ‘Income from house property’. AO rejected the claim of the assessee to treat the receipts on account of maintenance agreement as rental income and taxed the same under the head ‘Income from other sources’. In the case in hand the assessee is showing receipt as ‘Business income’. In the case of Runwal Developers Pvt Ltd [2011 (10) TMI 35 - BOMBAY HIGH COURT] has held that maintenance charges received were towards maintenance and promotion of common area and the amounts received towards maintenance charges were business receipts liable to be assessed under the head ‘Income from business’. In the case of Karnani Properties [1971 (8) TMI 18 - SUPREME COURT] has held that services rendered by the assessee to its tenants were result of its activities carried on continuously in an organized manner with a set purpose and with a view to earn profit and hence those activities were business activities and income arising therefrom was assessable as ‘business income’. We do not find any error or infirmity in the findings of the ld. CIT(A). Both the grounds taken by the Revenue are accordingly dismissed.
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