2014 (4) TMI 672

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....he learned CIT(A) erred in restricting the deduction of maintenance expenses to Rs. 5,69,054 being electricity expenses on air conditioning from the total maintenance expenses of Rs. 21,91,176 while computing income under the head "income from other sources. 2. The learned CIT(A) erred in holding the claim of maintenance expenses as excessive and unreasonable and concluding that only electricity expenses for running of air-conditioners ought to be allowed. 3. The learned CIT(A) ought to have appreciated that he maintenance expenses of Rs. 21,91,176 were incurred wholly and exclusively for the purpose of earning income from "Air-conditioning and other charges received' and the same ought to be allowed as deduction." 2. The assessee ....

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....usiness of MIL was demerged. In this manner, the Mafatlal Centre, the premises which belonged to MIL was passed on to the assessee and the expenditure incurred by the MIL on the said property was also passed on to the assessee. Thus, the assessee treated the income from air-conditioning charges assessable under the head "income from house property" and property maintenance expenditure was claimed as deduction from the said income. It was also submitted that the assessee had no direct agreement with the tenant for rent and air-condition. 4. The learned Commissioner (Appeals) held that in the earlier years also, income from air-conditioning charges has been assessed under the head "income from other sources", therefore, as a matter of cons....

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....unsel submitted that the nature of expenditure which were incurred on running of air-conditioning related charges and expenses incurred on other utilities. The conclusion drawn by the learned Commissioner (Appeals) is not correct insofar as only allowing electricity expenses and that to be purely on ad-hoc basis without analyzing the nature of other expenses which are liable for deduction under section 57. 6. The learned Departmental Representative, on the other hand, strongly relied upon the findings of the learned Commissioner (Appeals). 7. We have carefully considered the rival contentions and perused the material available on record. Insofar as the issue, whether receipt from airconditioning and other charges are to be assessed un....