2018 (12) TMI 901

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....n 17th November 2006, declaring loss of Rs. 3,63,414. In course of the original assessment proceedings, the Assessing Officer while verifying the return of income filed by the assessee noticed that the assessee has offered rental income of Rs. 13,28,434, as income from house property, whereas, air conditioning charges and other charges of Rs. 1,84,239, was shown as income from other sources. Further, he found that the assessee had claimed deduction of Rs. 21,91,176, towards property maintenance expenses. While completing assessment under section 143(3) of the Income Tax Act, 1961 (for short "the Act") the Assessing Officer treated air conditioning charges and other charges of Rs. 12,84,239, as income from house property and allowed the stat....

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....ommissioner (Appeals) after considering the submissions of the assessee in the context of facts and material on record observed that while the assessee has shown income of air conditioning and other facilities provided to the tenant as income from other sources, it has claimed expenses towards water, electricity, fire fighting equipments, maintenance, etc. Thus, he held that the expenditures which are not connected or related to air conditioning and other facilities provided to the tenant are not allowable. Accordingly, he upheld the disallowance made by the Assessing Officer. 5. The learned Authorised Representative submitted that the expenditure claimed by the assessee is directly related to the income earned from air conditioning and ....

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....clear that the Department has accepted assessee's claim of air condition and other charges to be assessable under the head income from other sources. The dispute is only with regard to the quantum of expenditure allowable to the assessee. While the Assessing Officer has disallowed part of the expenditure claimed by the assessee on the reasoning that it cannot exceed the income earned by the assessee, the learned Commissioner (Appeals) has held that some of the expenditures are not relatable to the air conditioning facilities. On a perusal of the assessment order, it is seen that the expenditure of Rs. 21,91,176 was claimed by the assessee towards air conditioning and other expenses, lift facilities, common securities, fire fighting system, ....