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TMI Blog2012 (10) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... ment proceedings, the Assessing Officer noted that assessee has shown rental income of Rs. 1,56,48,000/-. Assessee has purchased the property Unit 1 & 2, Ground Floor, Lower Parel, Mumbai in May, 2008 and let it out to the ICICI Prudential Life Insurance Company Ltd. Assessee has made two separate agreements for leasing out of the property. First agreement is for the leasing out of the house and second agreement is for "provision of amenities and services". The company has to pay to the assessee a sum of Rs. 4,50,000/- per month for the provisions of amenities and services and a sum of Rs. 3,20,000/- @ per month for the rent of the property. Original computation of income from Mumbai property as submitted by the assessee is as below :- Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was at Rs. 86,93,333/- which was as per agreement of services of amenities, was treated as income from other sources. While doing so, the Assessing Officer has relied on the decision in case of CIT vs Kanak Investment Pvt. Ltd 95 ITR 419 (Cal) and in case of Attukal Shopping Complex Pvt. Ltd. vs CIT (2002) (Ker.). The assessee preferred an appeal before Ld. CIT(A). Similar contentions were raised before Ld. CIT(A) which were raised before Assessing Officer. Further, reliance was placed on the decision of Hon'ble Supreme Court in case of CIT vs Shambhu Investment Pvt. Ltd. 263 ITR 143 (SC). Ld. CIT(A) was also in agreement with the finding of the Assessing Officer. Accordingly, he confirmed the action of the Assessing Officer. Now t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard the rival submissions and considered them carefully. After considering the submissions and perusing the material on record, we find that assessee deserves to succeed on the issue involved. Copy of agreements are placed on record. At last page of the agreement list of amenities is mentioned. First is electricity connection. It is provided that assessee will provide electricity connection however charges will be paid by the licensee. In second amenities, it is shown that the licensor i.e assessee also permit the licensee to put signage at all the locations at no extra cost and if any permission is required that would be obtained by the licensee. From this list of amenities, we donot understand what service has been provided by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amenities. Providing an electricity connection, it cannot be said that in regular services, has been provided by the assessee. Charges of electricity has been paid by licensee and not by assessee. 9. Before, The Hon'ble Supreme Court in case of Shambhu Investment, the facts were that the assessee owned a movable property. It occupied a proportion of property and let out the rest to be used as table space to occupants with furniture, lights and air-conditioners. The assessee provides services like watch and ward staff, electricity and water and other common amenities. The monthly rent was payable inclusive of all charges. The assessee had also recovered by way of security from the occupants. The Hon'ble High Court held that income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atio of the Hon'ble Supreme Court, and Hon'ble Bombay High Court squarely applicable on the facts of present case. Similar views have been expressed by the Hon'ble Madras High Court in case of CIT vs A.S. Jaya Kumar 215 ITR 422. 13. In view of the above facts and circumstances and in view of the decisions of the Hon'ble Supreme Court and Bombay High Court and also Madras High Court, we are of the considered view that entire amount received by assessee on account of two separate agreements is to be treated as income from house property. Accordingly, we direct the Assessing Officer to treat the entire consideration, as income from house property. We order accordingly. 14. In the result, the appeal of the assessee is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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