2012 (8) TMI 1117

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.... Hon'ble ITAT in the assessee's own case for earlier assessment year relied upon by ld. CIT(A) in the appellate order has not been accepted by the Department and the matter is subjudice before the Hon'ble High Court. 3. The A.O., while making the addition of ₹ 71,30,158/- has observed as under:- "The assessee company is providing house keeping services to its associated concerns. The total receipts of ₹ 8595552/- from such services are credited to the profit and loss account and shown under the head 'other income' in the P & L account. During the course of assessment proceedings of AY 2003-04 the assessee was asked to furnish details of house keeping charges received and the nature of service provided by it. In response to th....

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....e assessee has provided office accommodation to various sister concerns. In other sense, the same has been let out to the sister concerns. Hence, the portion of house keeping charges represented the receipts for letting out the property and the same is nothing but rental income. In various judgments, courts have held that the composite rent receipts for providing added auxiliary services is income from other sources. In this regard, the decisions in the following cases are relevant to the facts of case. I. CIT v. Smt. P Andal Ammal 243 ITR 715 (Mad) II. CIT v. Model Mfg. Co.(P) Ltd.(1986) 159 ITR 270 (Cal) III. Addl. CIT National Newsprint & Paper Mills Ltd.(1978 114 753 (Cal) IV. Chitpore Golabari Co.(P) Ltd. CIT (1971) 82 ITR 753 ....

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....We have heard the rival submissions, perused the orders of the lower authorities and the materials available on record. In our considered view, there is no case for interference in the order of the Learned CIT(Appeals). The reasons are- (i) That, the Assessing Officer has not doubted that what the assessee is receiving is income from business as part of it as has been so assessed by him. Only a part amounting to ₹ 69,88,836/- has been treated as income from 'other sources'. (ii) That, the assessee has been assessed in the past on these receipts from "House Keeping Services" under the head "Business". Facts remaining the same, the Revenue should take a consistent view. It has been so held by the Hon'ble Rajasthan High Court in th....