Appellant wins case on rental income classification, Tribunal directs full amount as house property income.

The Tribunal ruled in favor of the appellant, directing the Assessing Officer to treat the entire amount received as income from house property. The Tribunal found that the agreements for rent and amenities/services were interrelated, with no actual services provided, leading to the conclusion that the entire sum should be considered rental income from the property. By citing relevant case laws and distinguishing previous cases where distinct services were offered, the Tribunal allowed the appeal and overturned the decision to classify part of the income as income from other sources.

---

---

Issues:
Assessment of income from property as income from other sources based on separate agreements for rent and amenities services.

Analysis:
The appellant contested the assessed amount of Rs. 86,93,333/- received from a tenant, claimed as income from house property but assessed as income from other sources. The Assessing Officer noted rental income of Rs. 1,56,48,000/- from leasing out a property to a company. The appellant had separate agreements for rent and amenities/services. The Assessing Officer treated the rental income as income from house property and the amenities/services income as income from other sources, citing precedents. The CIT(A) upheld this decision, leading to the appeal.

The appellant argued that both agreements were interrelated, and no amenities were actually provided. The Tribunal examined the agreements listing amenities, such as electricity connection and signage permission, finding no actual services provided. The Tribunal disagreed with the separate treatment of income and held that the entire amount should be considered income from house property, as the agreements related to the same property without additional services.

The Tribunal distinguished previous cases where separate services were provided, emphasizing that in this case, no distinct amenities were offered. Referring to relevant case laws, including the Supreme Court decision in Shambhu Investment, the Tribunal concluded that the entire amount received should be treated as income from house property. Citing Bakhtawar Construction Pvt. Ltd. and other court rulings, the Tribunal directed the Assessing Officer to treat the entire consideration as income from house property, allowing the appeal.

---