TaxTMI 
TaxTMI 
2014 (7) TMI 1110
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....t case is a partnership firm, which filed its return of income for the year under consideration on 24/09/2008 declaring total income of Rs. 3,41,540/-. In the said return, income received from business service centre in the form of license fees and service charges was declared by the assessee under the head "Profit & gains of business or profession" and after claiming various expenses against the said income, net income was offered to tax. 3. During the course of assessment proceedings, enquiries were made by the AO with the parties who had occupied the business services centre of the assessee. These enquiries made by the AO revealed the following facts; 1. The property was given on monthly rent. 2. The rent was determined keeping in vie....
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....d service charges was chargeable to tax in the hands of the assessee under the head "Income from House Property". Accordingly, he assessed the said income as house property income of the assessee after allowing standard deduction for repairs u/s 24 and disallowing various other expenses claimed by the assessee which is resulted in substantial addition to the total income of the assessee. 5. Against the order passed by the AO u/s 143(3), appeal was preferred by the assessee before the ld. CIT(A) and after considering the submission made by the assessee as well as the material available on record, the CIT(A) found that limited extra amenities were provided by the assessee is in the nature of certain furniture and fixtures and that too in cer....
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....extra amenities and other facilities during the course of running the business service centre constituted business income of the assessee and the same should be assessed under the head "profit & gain of business or profession" after allowing the corresponding expenses. In this regard, it is observed that there is contradiction in the findings given by the authorities below on this aspect of the matter. According to the AO, the enquiry made with the concern parties revealed that no extra amenities or facilities were provided by the assessee in the business services centre, whereas the AO himself and ld. CIT(A) at some places in his impugned order accepted that certain facilities and amenities such as Air-conditioner, furniture etc. were prov....