2011 (11) TMI 500

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....s", ought to have been considered only under the head "Income from House property", as returned by the assessee. Assessee's alternate ground is that depreciation has not been allowed to it on the items considered as amenities. 2. Short facts apropos are that assessee had leased out on 24.9.2003 one building at 1/240, East Coast Road, Injambakkam, Chennai-41, to one M/s Asian Hotels. There were two agreements -first dated 24.9.2003 for the lease of the building and the second dated 10.10.2003 for amenities. Similarly, assessee rented out another property at No.2/1-B-3, Seashell Avenue, Sholinganallur, Chennai, to M/s Chennai Corporate Club through a lease agreement dated 1.12.2005. There was a separate lease agreement for amenities of eve....

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.... was rent. Reliance was also placed on a host of decisions mentioned hereunder, in support of its arguments:- 1.  CIT v. Bhakhtawar Construction (P.) Ltd. [1986] 162 ITR 452/27 Taxman 7 (Bom.) 2.  Dr. P.A. Varghese v. CIT [1971] 80 ITR 180 (Ker.) 3.  Keyaram Hotels (P.) Ltd. v. Asstt. CIT [2008] 300 ITR 118/173 Taxman 262 (Mad.) 4.  CIT v. Mcleod & Co. Ltd. [1993] 203 ITR 290 (Cal.) 5.  CIT v. National Storage (P.) Ltd. [1967] 66 ITR 596 (SC) 6.  Addl. CIT v. Hindustan Machine Tools Ltd. [1980] 121 ITR 798/[1979] 2 Taxman 433 (Ker.) 7.  CIT v. National Newsprint & Paper Mills Ltd. [1978] 114 ITR 388 (MP) 8.  S.G. Mercantile Corporation (P.) Ltd. v. CIT [1972] 83 ITR 700 (SC) ....

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....ater - 12 nos. 12.  Pedestal fan - 2 nos. On a perusal of the above, ld. CIT(Appeals) came to a conclusion that the hire charges were for Tables, Dinning Tables, cots, etc. and none of them arose out of ownership of the land and building. As per the CIT(Appeals), just because the lessees had deducted tax as applicable for payment of rent would not convert such hire charges to rental income assessable under the head "Income from House property". Ld. CIT(Appeals) also noted that none of the decisions cited by the assessee supported its case. He, therefore, upheld the order of the Assessing Officer treating the amenity charges as "Income from Other Sources". Assessee had also pleaded before the CIT(Appeals) to direct allowance of de....

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....A look at Section 22 of Income-tax Act, 1961 (in short "the Act") is necessary here. The said Section runs as follows:- "22. The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from House property." What is clear from the above is that annual value of the property consisting of building or land appurtenant thereto alone could be considered under the head "Income from House property". The only question therefore to be answered is whether t....