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2021 (12) TMI 560 - AT - Income TaxCorrect head of income - income from infrastructure support services - taxable under the head ‘profits and gains from business or profession’ or under the head ‘income from house property’ - HELD THAT:- Existence of two agreements is concerned, absolutely, there is no dispute. It is also not in dispute that for the assessment year 2011-12, 2012-13 and 2015-16 also, the assessee offered the receipts under the two streams, namely, rental income earned from leasing out the space within the mall to the tenants and offering the same under the head ‘income from house property’ and the other is income from business activities of maintaining, operating and providing equipments essential for operation of mall, i.e., infrastructure support services under the head ‘ profit and gain from business or profession’. It is also not in dispute that for the assessment year 2011-12 and 2012-13, by order dated 16.12.2015 and 18.02.2015, the Assessing Officer accepted the same; whereas for the assessment year 2015-16, ld. CIT(A) in first appeal granted relief to the assessee by holding that the income from infrastructure support services is taxable under the head ‘profits and gains from business or profession’ and not under the head ‘income from house property’. As decided in CHANDER NAGAR CHEMICALS AND MINERAL PRIVATE LIMITED VERSUS ITO, WARD-3 (3) , NEW DELHI. [2020 (9) TMI 342 - ITAT DELHI] When the assessee had chosen to bifurcate the transaction and to charge separately towards the rent of the demised premises and for the services provided and hire charges, in our considered opinion the Revenue cannot prevent the same on the ground that such process would result in loss to the Revenue. In the circumstances, we hold that the action of the authorities below not to permit the assessee to arrange their business in the way which is beneficial to them, within the permissible limits of law, is impermissible. Then it goes without saying that the assessee is entitled to claim the business expenses in respect of the income from the services provided and hiring of equipment, and statutory deductions under section 24 (a) of the Act insofar as the income from the house property is concerned. With this view of the matter, we direct the learned Assessing Officer to allow the statutory deduction under section 24 (a) of the Act also and the interest incurred in respect of the house property - Appeal of the Revenue is dismissed.
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