2022 (1) TMI 331

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....and is joint owner of certain floors. The assessee let out the building that it owns on rent. Besides the rent, the assessee collected maintenance fees from its tenants for providing services. The maintenance service was provided by Prestige Property Management and Services Ltd. Amounts collected by the assessee in the form of maintenance charges from the tenants was offered to tax under the head 'Income from Other Sources' and the payments made to Prestige Property Management and Services Ltd. for providing service to the tenants was claimed as a deduction. 3. The AO noticed that two tenants occupying the 7th and 8th floor of the commercial complex owned by the Assessee viz., Real-Den Commerce and Rockwell Automation paid maintenance char....

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.... from Rockwell Automation 1,56,51,300 11,88 464 Total 4,26,49,995 23,44.568 The total rent and maintenance amounts to Rs. 4,49,94,563/- (4,26,49,995+23.44,568) Therefore, Rs. 4,26,49,995 / 4,49,94,563 x Rs. 17,86,136 = Rs. 16,93.064/- was disallowed and charged to income under Other Sources. 4. Before CIT(A), the Assessee submitted that the Assessee had collected Maintenance Fee from the Tenants situated in the Seventh and Eighth Floor apart from Rent. The Maintenance Fee Collected from the said tenants was paid to M/S Prestige Properly Management and Services Ltd.. The Maintenance Charges incurred on behalf of the Assessee was towards Maintenance of the, Building and for rendering various services to the tenant. There was no reason ....