TaxTMI 
TaxTMI 
2019 (7) TMI 166
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....ing grounds of appeal: 1. a) The appellant submits that the order passed by the learned Assistant Commissioner of Income-tax, (hereinafter referred to as "the Assessing Officer") erred in treating outgoing charges amounting to Rs. 37,34,450/- as income under the head "Income from House property" as against offered under head "Profits and gains from business & profession" as per the return of income filed under section 139(1) of the Act by the Appellant. 2. Without prejudice to what has been stated above, the appellant submits that if its contention that outgoing charges be taxed under head "Profit and gains of business & profession" is not accepted, the net outgoing charges received (i.e. outgoing charges received less exp....
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....eated the amount of Rs. 37,34,450/- received on account of outgoing charges as "Income from House Property" in place of "Income from Business and Profession" as claimed by assessee. On appeal before the ld. CIT(A), the action of Assessing Officer was confirmed. Therefore, further aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us. 3. We have heard the submissions of the ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the revenue and perused the material available on record. The ld. AR of the assessee submits that the assessee received a sum of Rs. 37,34,450/- as outgoing charges. The assessee has shown the addition under the head "Income from Business ....
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....count for each of the assessment year, which consists of prior or subsequent to the Assessment Year under consideration. 4. The ld. AR of the assessee further submits that coordinate bench of Mumbai and Jaipur Tribunal in Kavita Marketing Pvt. Ltd. vs. ITO [2016] (159 ITD 547)/70 taxmann.com 391 (Mumbai Trib) and Vikram Golecha vs. CIT 123 ITD 438, on similar facts held that when the assessee had let out the property, on which he was receiving rent and faicility services charges for providing specific services like housekeeping security etc., the same is liable to be assessed as business income. 5. The ld. AR of the assessee submits that by way of alternative ground No.2 the assessee has raised contentions that if the outgoing charges....
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....For ground No. 4 the ld. DR submits that the assessing officer may be directed to verify the facts and re-compute the interest under section 234C. 9. We have considered the submissions of the ld. AR for the assessee and ld DR for revenue and perused the record. The facts leading to raising the grounds no.1 of the appeal are not much in dispute. The assessee has received the outgoing charged apart from the rent. These facts are also indicated in the lease agreements placed on record by the assessee. The assessee offered the said charges under the head "business income", however, the assessing officer treated the said outgoing charges as a part of 'income from house property'. We have seen that the coordinate bench of Mumbai Tribunal in Ka....
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....from the ownership but from use thereof, such profit and gains would be chargeable to tax as 'business income' and not income under the head income from House Property'. In fact, in the case before Hon'ble Gujarat High Court, assessee was owner of the property, which was let out to the tenants. Apart from letting out, assessee was also rendering certain services by providing various amenities for which amount was being separately earned. The Hon'ble High Court held that amount received from the tenants as 'rent' for letting of the property was assessable under section 22 of the Act as "income from house property" and the other receipts in respect of the services rendered to the tenants was liable to be assessed u....
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....the Assessing Officer to recompute the income in view of the aforesaid directions. In the result, on this ground assessee succeeds." 10. Considering the decision of the coordinate bench on the similar issue that where the assessee had given on rent a property, on which it was receiving rent and facility service charges, since facility service charges were being received by assessee in return of providing specific services like housekeeping, security, etc., same was liable to be assessed as business income. Similar view was taken by Jaipur Tribunal in Vikram Golecha (supra). Even in AY 2005-06, 2006-07, 2007-08, 2009-10, 2011-12 the revenue has allowed the said outgoing charges as business income of the assessee, therefore, the assessing ....