TaxTMI 
TaxTMI 
2014 (1) TMI 705
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....ch was not pressed by the learned AR at the time of hearing of the appeal and, therefore, the same is dismissed as not pressed. 2. The facts relating to assessment of air conditioning charges are that the assessee during the year had received rent of Rs. 45,00,049/- from letting out of Mafatlal Centre. Assessee had also received a sum of Rs. 66,25,957/- on account of air conditioning, electricity and water charges. The assessee had declared the rental income under the head "income from house property" and the air conditioning and other charges had been declared as income from other sources against which property maintenance expenses of Rs. 82,54,091/- had been claimed resulting into net loss of Rs. 20,28,134/- under the head " income from ....
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.... up to be considered either as income from other sources or as income from business. He accordingly confirmed the order of AO assessing the entire income as income from house property. CIT (A) placed reliance on the judgment of Hon'ble high Court of Bombay in case of CIT Vs. Bhakhtawar Construction P. Ltd. (162 ITR 452)and some other judgments. Aggrieved by the decision of CIT (A), the assessee is in appeal before Tribunal. 4. Before us, learned AR for the assessee submitted that Mafatlal Centre the income from which is under consideration in this appeal was earlier part of Mafatlal Industry Ltd. (MIL). MIL had became sick and as per the sanctioned scheme of BIFR the real estate and investment business of MIL demerged and made part of asse....
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....ons carefully. The dispute raised is regarding assessment of income from providing air conditioning services as well as water and electricity services by the assessee to the tenants of Mafatlal Centre. The said charges had been received by the assessee in addition to rental value of letting out the said Mafatlal Centre. The rental income has already been assessed by AO as income from house property. In addition the AO has assessed the other charges as income from house property. CIT (A) has confirmed the order of AO. In our view the order of CIT (A) cannot be upheld. The income tax under the head "income from house property" is required to be charged on the bonafide annual letting value of land and building. In case the land lord in additio....
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....m other sources under section 56 (2) (iii). It was accordingly held that the entire income had to be assessed as income from house property. It may be noted here that the issue in that case was not whether the rental income should be assessed as income from house property and air conditioning charges as income from other sources. The issue was whether the entire income should be assessed as income from house property or as other sources u/s 56(2) (III). Therefore, the Hon'ble High Court had no occasion to examine whether the other charges could be assessed as income from other sources. In the present case the AO has himself assessed the rental income as income from house property and the dispute is only in relation to other charges which in....