TMI Blog2007 (6) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided as per the agreements which are independent ones. It is clear that the assessee-firm has to provide certain services. For the purpose of providing such services, the occupant has to pay a consolidated charge of Rs. 1,200 per month in the case of T.C. There is no dispute regarding the actual services provided by the assessee firms and the Revenue also did not deny the same. The only reason given by the Tribunal is that the assessees failed to substantiate their claims. The profit and loss account as well as balance-sheet were filed before the authorities wherein all the details regarding expenditure as well as receipts were reflected. There is no proper consideration of the details regarding providing services as well as receipt of the same by the authorities below. The authorities ought to have considered the same. If it is necessary, they have to bifurcate a portion of the rental receipt into various heads. In such circumstances, in the interest of justice, we direct the Assessing Officer to consider the details regarding the services provided as well as the amount received for the same and the said receipt amounts derived from providing services may be considered und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial complexes and running them as business centres and such other business as may be mutually agreed amongst the partners. The business also includes providing occupants, services in the nature of providing security, supervisor, sweeper etc., providing lighting in all common areas, water and sanitation facilities and maintain the building, the common areas, the overhead tank, sump etc. for the peaceful, smooth, effective and conducive conduct of business of the occupants and to provide such other services such as common reception, telephone booth, generator etc. as may be required by the occupants and agreed upon by both the parties from time to time. There is also a service-cum-lease agreement entered by the assessee and the occupants on April 1, 1997. The relevant assessment year is 1999-2000 and the corresponding accounting year ended on March 31, 1999. The assessee filed a return of income on March 22, 2000, admitting an income of Rs. 3,850 under the head Business . It is seen from the profit and loss account accompanying the return that the entire receipts were only from rentals. The Assessing Officer was of the view that the rental income has to be treated as income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccompanying the return that the entire receipts were only from rentals. The Assessing Officer was of the view that the rental income has to be treated as Income from house property and not under the head Business and hence notice under section 148 of the Act was issued on November 22, 2000. The assessee-firm by its letter dated December 13, 2000, stated that the return filed on March 22, 2000, may be treated as the one filed in response to the notice under section 148 of the Act. Later, notice under section 143(2) was issued to the assessee on December 6, 2000, requiring the assessee to appear on December 19, 2000. The assessment was completed under section 143(3) read with section 147 of the Act, and assessed the rental receipts under the head House property and determined a total income of Rs. 2,42,500. Aggrieved by the order the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) dismissed the appeal and confirmed the order of the Assessing Officer. Aggrieved, the assessee filed an appeal to the Income-tax Appellate Tribunal ( the Tribunal in short). The Tribunal dismissed the appeal and confirmed the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be assessed under the head Income from house property on the ground that certain portion of the amount is related to services provided as per the agreements which are independent ones. The rental receipts shows only the consolidated amount, instead of apportioning it into different heads. The Revenue should have apportioned the amounts and such apportioned amounts should be assessed under the head Income from business or Income from other sources . In the present cases, there are service-cum-lease agreements entered into on April 1, 1997, by the assessees with their respective occupants. For convenient purpose, we reproduce below the clauses contained in one of the tax cases, namely T.C. No. 75 of 2004: 1. The consolidated service charges payable shall be Rs. 1,200 (rupees one thousand and two hundred only) per month or such sum as agreed upon mutually by both the parties. 2. The advance amount shall be Rs. 30,000 (Rupees thirty thousand only) which shall be interest free. 3. The OCCUPANT/SERVICE RECEIVER shall also be entitled to sub-lease this facility with the prior permission of LANDLORD/SERVICE PROVIDER. 4. The service-cum-lease agreement shall be vali ..... X X X X Extracts X X X X X X X X Extracts X X X X
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