Maintenance Charges and Property Income: Tribunal Clarifies Classification and Valuation Under Section 44AD and Section 23(1)(c)

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....ITAT determined key issues regarding income from house property and maintenance charges. The tribunal held that maintenance charges for specific services like security, housekeeping, and infrastructure maintenance should be classified as business income under section 44AD, not income from house property. For the Purvankara Flat, the property was deemed let out under section 23(1)(c), with annual value calculated based on fair rental value since the property remained vacant and was not self-occupied. The AO's assessment of annual value using municipal/fair rental value was upheld. Maintenance charges were directed to be accepted as business income, while the deemed let-out property's valuation was confirmed, partially allowing the assessee's appeal and partially dismissing other grounds.....