TMI Blog2020 (5) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- We are in agreement with the contention of the Ld. Sr. Department Representative that the Ld. CIT (A) could not have deleted the disallowance of expenditure of maintenance services if he was treating the entire income from rent and maintenance charges as income from house property and thereafter was allowing statutory deduction u/s 24(a) of the Act @ 30% of the annual value. It is settled law that no other expenditure apart from the standard statutory deduction of 30% and the municipal taxes actually paid can be claimed as deduction from income from house property. Only the rental income should be charged to tax under income from house property after allowing deductions in respect of the Municipal taxes paid and of the 30% st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come in terms of our directions after giving proper opportunity to the assessee to present its case. - ITA No.3631/Del/2014, Cross Objection No.53/Del/2015 (Arising out of ITA No.3631/Del/2015) - - - Dated:- 19-5-2020 - Shri G.S. Pannu, Vice President And Shri Sudhanshu Srivastava, Judicial Member For the Appellant : Sh. S.K. Chaurasia, Sr. DR For the Respondent : Sh. M.K.Madan, CA ORDER PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER: This appeal is preferred by the Department against order dated 17.04.2014 passed by the Ld. Commissioner of Income Tax (Appeals)-1, New Delhi {CIT (A)} and pertains to Assessment Year 2011-12. The sole issue challenged by the Department is deleting the disallowance of ₹ 2,11,03,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, on appeal, held that maintenance expenses were deductible although the loss was to be disallowed. Aggrieved, the Department seeks relief by praying for restoration of disallowance of maintenance expenses whereas the assessee seeks taxing of maintenance income under income from other sources after deduction of the maintenance expenses incurred therefrom. 3.0 The Ld. Senior Department Representative submitted that the Ld. CIT(A) had erred in deleting the disallowance of ₹ 2,11,03,333/- made by the Assessing Officer on account of maintenance expenses. The Ld. Sr. Department Representative also submitted that the maintenance charges received in relation to the property should be regarded as part of the composite rent for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd expenditure during the year under consideration. 5.0 We have heard the rival submissions and have also perused the material on record. We are in agreement with the contention of the Ld. Sr. Department Representative that the Ld. CIT (A) could not have deleted the disallowance of expenditure of maintenance services if he was treating the entire income from rent and maintenance charges as income from house property and thereafter was allowing statutory deduction u/s 24(a) of the Act @ 30% of the annual value. It is settled law that no other expenditure apart from the standard statutory deduction of 30% and the municipal taxes actually paid can be claimed as deduction from income from house property. On the other hand we also note that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om house property and allow the statutory permissible deductions there from. The expenditure on maintenance services is not to be deducted from income from house property and neither the income from maintenance charges recovered is to be treated as income from house property. Thus, the appeal of the Department stands allowed to that extent. However, the gross income from maintenance charges and the expenditure incurred thereon would have to be charged to tax under income from other sources and to that extent the assessee also gets relief and the Cross Objections stands allowed to that extent. However, the quantum of the maintenance charges received and the maintenance expenses incurred by the assessee, as claimed by the assessee, would have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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