TMI Blog2022 (6) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are common for tenants and non-tenants and have nothing to do with the letting out activity like cleaning and housekeeping etc., and such services could be secured by the occupants of the premises even by the third parties and, therefore, merely because they are provided by the land lord alone, it cannot be said that they are part of letting out activity. For the AY.2012-13, the Ld. CIT (A) directed the learned Assessing Officer to adopt the annual value of the premises as shown by the assessee and compute the income from house property accordingly by disallowing the repair and maintenance services of the premises. Having regard to this direction given in the earlier assessment year, we are of the considered opinion that for this year also the very same course could be followed. As a matter of fact, learned AR pleaded for the same during the course of arguments. Having considered the totality of circumstances, as analysed above, we are of the considered opinion that best course open in this matter is to direct the learned Assessing Officer to adopt the annual value of the premises as shown by the assessee and compute the income from house property accordingly, as was follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16,300/- after claiming exemption u/s.54EC of the Income tax Act, 1961 ( the Act ). During the course of assessment proceedings it was found that the assessee admitted an income of Rs.57,56,254/- from house property, Rs.1,31,84,565/- from capital gains and Rs.2,30,480/- from other sources. From their property called Challa Chambers, wherein the brother of the assessee was also having a share, the assessee derived an income of Rs.12,35,986/- towards maintenance charges and after deducting the expenses to the tune of Rs.10,65,361/-, the assessee had shown the above Rs.2,30,480/- from other sources. Insofar as this income is concerned, the case of the assessee has been that they have entered into rental agreements with their tenants and maintenance agreements with both tenants and non-tenants, to whom they were rendering some additional services like watch and ward facility, lift, parking, security, general maintenance and power back-up for common areas etc. 3. According to the learned Assessing Officer, all these facilities, insofar as they are provided to the tenants, are attached to the letting out the property and cannot be treated as independent services . Learned Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of tenant and non-tenants, maintenance service agreement is different from the rental agreement, and inasmuch as the assessee is rendering certain services which are beyond the scope of rental agreement and on par with the services rendered to the non-tenants, it cannot be said that the amounts received for the services rendered to the tenants beyond the scope of rental agreement would also relatable to the income from house property. According to the assessee, the sums received by the assessee under the maintenance agreement does not form part of the income from house property but those are part of business income. 7. Learned AR further submitted that under identical circumstances for the AY.2012-13, the Ld. CIT(A) upheld the contention of the assessee that the service charges constitute a separate source of income, though the income from house property taxes into its fold the letting out the tenant which includes the services like providing fans, bulbs, air conditions and lift etc. He submits that Ld. CIT(A) further held in the AY.2012-13 that any payments towards services like cleaning, housekeeping, security and lighting etc., would not fall in the ambit of letting out the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided by the land lord alone, it cannot be said that they are part of letting out activity. Further, for the AY.2012-13, the Ld. CIT (A) directed the learned Assessing Officer to adopt the annual value of the premises as shown by the assessee and compute the income from house property accordingly by disallowing the repair and maintenance services of the premises. Having regard to this direction given in the earlier assessment year, we are of the considered opinion that for this year also the very same course could be followed. As a matter of fact, learned AR pleaded for the same during the course of arguments. 11. Having considered the totality of circumstances, as analysed above, we are of the considered opinion that best course open in this matter is to direct the learned Assessing Officer to adopt the annual value of the premises as shown by the assessee and compute the income from house property accordingly, as was followed in this case by the Ld. CIT(A) for the AY.2012-13. We order so and accordingly allow the grounds of appeal for statistical purposes. 12. Now coming to the issue relating to the exemption claimed by the assessee u/s. 54EC of the Act to the tune of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who derive the long term capital gains from the month of September of any year in whose case, it would be possible for investment of Rs. 50 Lakhs in two assessment years each. Such a classification has no nexus with the objects of the provision and, therefore, the unreasonable discrimination cannot be read into a provision of the Act so as to violate the principle of equality. While attributing such an act of discrimination, in violation of the principles of equality, to any statutory provision, the adjudicatory fora must be slow and reject such an interpretation. Basing on this analogy, he stresses that the decision of the Hon'ble Rajastan High Court in the case of Raj Kumar Sons (supra) has to be preferred to the decisions of the Hon'ble Madras High Court in consonance with the constitutionality of the interpretation. 15. Having considered the issue in the light of the submission made on either side, we find that the Ld. CIT(A) is right in his observation that there is conflict of decisions on this issue between various Hon'ble High Courts. The decisions of the Hon'ble Madras High Court supra were brought to the notice of the Ld. CIT(A). Ld. CIT(A), however, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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