TMI Blog2014 (1) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... remitted back to AO for computation of income from other sources – Decided partly in favour of Assessee. - ITA No.2028/Mum/2007 - - - Dated:- 6-6-2013 - Rajendra Singh And Sanjay Garg, JJ. For the Appellant : Shri Chaturbhuj Das Chatnani For the Respondent : Shri Girish Dave ORDER:- PER : Rajendra Singh This appeal by the assessee is directed against the order dated 20- 12-2006 of CIT (A) for the assessment year 2003-04. The dispute raised in this appeal is regarding nature of income received by the assessee from air conditioning and other charges and disallowance of property maintenance expenses. The assessee has also raised a ground regarding double disallowance of property maintenance charges which was not pressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om other sources. Reliance was placed on the judgment of Hon ble Supreme Court in case of Sultan Brothers Pvt. Ltd.Vs. CIT (51 ITR 353 and also on the judgment of Hon ble High Court of Kolkata in case of CIT Vs. Kanak Investments (P) Ltd. (95 ITR 418). CIT (A) however, did not accept the contentions raised. It was observed by him that electricity, water and air conditioning charges were attached to the enjoyment of the property by the tenants and, therefore, these had the same character as income from house property. These charges had been received basically from landlord-tenant relationship and it was not possible to enjoy the let out the property without such services. CIT (A) thus, held that these charges cannot be split up to be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointed out that in assessment year 2008-09 CIT (A) has again directed the AO to assess receipts from air conditioning and other charges as income from other sources. It was argued that income from house property is assessable only in respect of bonafide annual value of land and building and not in respect of services if any provided by the landlord. Reliance was placed on the judgment of Hon ble High Court of Kolkata in case of Kanak Investments P. Ltd. (95 ITR 351). Learned DR on the other hand strongly supported the orders of authorities below and placed reliance on the judgment of Hon ble Supreme Court in case of Shambhu Investments Pvt. Ltd. (263 ITR 143). 5. We have perused the records and considered the rival contentions carefully. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance on the judgment of Hon ble High Court of Bombay in case of CIT Vs. Bhakhtawar Construction Pvt. Ltd. In that case the assessee had let out the building to the tenant and by a separate agreement had made available the air conditioning facility to the tenants on payment of certain charges. The issue was whether the entire income consisting of rent and air conditioning charges should be assessed as income from house property or income from other sources u/s 56 (2) (iii). The Hon ble High Court noted that the assessee had provided only the facility of air conditioning and had not let out the installation and, therefore, provisions of section 56 (2) (III) were not applicable. Thus the income could not be assessed as income from other source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loit the immovable property by way of complex commercial operations, the income had to be assessed as income from business. In this case the assessee had taken almost the entire cost of the building as advance. Therefore it could not be said that the assessee wanted to commercially exploit the property. The intention was, therefore, to enjoy the rental value. The High Court accordingly held that the entire income had to be assessed as income from house property. The judgment of Hon ble High Court was upheld by the Hon ble Supreme Court. The case is obviously distinguishable as in that case the issue was not whether the rental income of the property should be assessed as house property and income from services and amenities as income from ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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