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2022 (1) TMI 331 - ITAT BANGALOREIncome from other sources - payments made to Prestige Property Management and Services Ltd. for providing service to the tenants was claimed as a deduction - disallowance of maintenance charges on a 'proportionate basis, in the same proportion as the rent to the total rent and maintenance charges collected from 2 parties - HELD THAT:- Maintenance charges collected by the Assessee from the tenants is shown as income from other sources and the payment made to PPMSL is reduced and the difference offered to tax under the head income from other sources. U/s.57(iii), deduction of expenditure incurred in earning income under the head other sources has to be allowed as a deduction. There is no basis to conclude that the amounts paid by the tenant of 7th and 8th floor is attributable to the entire property and therefore part of the same which is not attributable to 7th and 8th floor maintenance should be disallowed proportionately. The amounts collected from the two tenants was paid over by the Assessee to PPMSL and in such circumstances, was to be allowed as expenditure, when admittedly services were rendered by PPMSL. We find no legal or factual basis to support the disallowance made by the revenue authorities - Decided in favour of assessee.
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