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2015 (11) TMI 579 - ITAT MUMBAITreatment and taxability of maintenance charges received by the assessee from its tenants in the hands of the assessee - deductibility of maintenance charges paid by the assessee, in turn, to the developer by the assessee - Held that:- Maintenance charges are different from the nature of rent. These charges are not paid for the users of the property as such. These charges have been paid for making some extra use of the property, the maintenance charges are not in the nature of the rent simplicitor. These have been called maintenance charges but these are for the extra facilities enjoyed by the tenants. These cannot be said to be necessarily integral part of the rental income. In our view, these are apparently, over and above, the rental income earned by the assessee company, therefore, in our considered view, this income cannot be clubbed with the rental income. There can be different types of arrangements by the land lords with different tenants. Therefore, presuming that this kind of charges, form part of the rental income, in the given facts of the case, would not be fair and justified, in our considered view. Accordingly, it is held that these maintenance charges are not part of the rental income and therefore amount of maintenance charges, received by the assessee, in these facts and circumstances of the case is not part of the rental income. Further examined with regard to taxability of the these charges in the hands of the assessee company, these charges should not be clubbed with the rental income, therefore, these charges cannot be brought to tax under the head ‘income from house property’, in the given fact and circumstances. In our view, these charges should be brought to tax under the head ‘income from other sources’. Accordingly, the assessee should be eligible to make claim of the expenses also, which have been incurred for earning this income. Therefore, we hold that the amount received by the assessee on account of maintenance charges would be taxable under the head income from other sources and assessee will be eligible to make claim of the payment made under this head to M/s Tamilnadu Real Estate Pvt. Ltd. - Decided partly in favour of assessee.
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