TaxTMI 
TaxTMI 
2022 (4) TMI 713
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....4(a) of the Act. Therefore, assessing officer stated that the income chargeable to tax has escaped assessment to the extent of Rs. 49,02,455/- in the case of the assessee within the meaning of Sec. 147 of the I.T. Act, 1961. Therefore, the Assessing Officer held that neither Sec. 23 nor Sec. 24 provides for the deduction of expenses incurred towards Society Maintenance Charges. Accordingly, assessing officer has disallowed the claim of aforesaid expenses and added to the total income of the assessee. 3. Aggrieved, the assessee filed the appeal before the Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal of the assessee. 4. During the course of appellate proceedings before us at the outset the Ld. Counsel has contended that on similar issue and identical facts in the case of the assessee itself the coordinate bench of the ITAT, Mumbai has adjudicated the issue in favour of the assessee vide ITA No. 823/Mum/2021 A.Y. 2017-18. However, the Ld. D.R. has placed reliance on the decision of CIT(A). 5. Heard both the sides and perused the material on record. The claim of maintenance charges of Rs. 49,02,455/- against the rental income of the assessee has been disallowed on th....
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....r pays the municipal taxes, cess or any other charges in respect of the let-out property. Further the society maintenance charges also is paid by the licensor for the benefits/amenities enjoyed by the tenant. Hence society maintenance charge paid by the licensor has direct a nexus for earning rent. The appellant has claimed the said sum of Rs. 68,18,580/- was paid by it towards the common maintenance of the building including the provision of lift, cleaning common areas, providing lighting facility in the common area, common security etc. These facilities are provided by the appellant to the occupant of the premises (Tenant). The appellant further humbly submits that, the non occupancy charges which is including society maintenance charges is also charged by the housing society to members (landlord) whose properties are let-out. Therefore, while determining the annual letting value (ALV) of the property, the sum for which the property might be reasonably expected to be let from year to year, the non occupancy charges paid to the society has to be taken into account. When it is taken into account, the annual letting value (ALV) would be considerably reduce....
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.... Held, We find that assessee has claimed a sum of 22,888/- was paid by it towards common maintenance of the building including the provision of lift, cleaning of common areas etc. provided by the assessee to the occupants of the flat. Thus, it is the assessees argument that while determining the rent receipt by it from the tenant, the amount of 22,888/- should have been excluded from the gross amount of the rent received by the assessee since it was only reimbursement of the utility charges paid by the assessee Lo the society on behalf of the tenant for the services enjoyed by the tenant. In our considered opinion, the view adopted by the Ld. Commissioner of Income Tax (A) is cogent one. We further note that Ld. Commissioner of Income Tax (A) has noted that assessee own case for AX 2007-08, the said issue was decided in favour of the assessee by the Ld. Commissioner of Income Tax (A). ITA No. 827/Del/2012 This fact was not controverter by the Ld. Departmental Representative. Under the circumstance, in the facts and circumstances of the case, we do not find any illegality or infirmity in the order of the Ld. Commissioner of Income Tax (A). Accordingly, we u....
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....rding the second issue, the Ld. Counsel for the assessee submitted that the issue is squarely covered by the decision of Mumbai Bench of the Tribunal in the case of Sharmila Tagore v. JCIT, (2005) 93 TTJ (Mumbai) 483 and also in the case of Bombay Oil Industries Ltd. v. DCIT reported in (2002) 82 ITD 0626 (Mum.). The Ld. Counsel for the assessee submitted that the rental income of Rs. 14,40,000/- received by the assessee from the tenant includes the society maintenance charges and Municipal Corporation taxes and hence the assessee has rightly reduced the said charges on account of society maintenance charges and Municipal Corporation taxes amount to Rs. 1,80,000/- from the gross rental received. The Ld. D.R. supported the orders of authorities below. 14. We have considered the rival contentions and also perused the material available on record. We have observed that the assessee has paid society maintenance charges of Rs. 1,17,825/- which is stated to be the obligation of the lessee and the same is duly included in the rent received by the assessee. In our considered view, this issue is squarely covered by the decisions of the Tribunal in the cases of Sharmila Tagore (supr....