Amenity charges forming part of same transaction is assessable as House Property Income

Prakash Datta Samant Vs. Assistant Commissioner Of Income Tax (ITAT Mumbai)

Ground No. 2 & 3 is related with head under which amenity charges received by the assessee would be asses sable to tax. A perusal of Clause-1 of Amenities Agreement dated 21/08/2008 reveals that this agreement was to run concurrently and was to be co-terminus with the Leave & License Agreement of same date. As per Clause-3, the assessee was required to provide services of maintenance, upkeep, cleanliness, security services and other general services that may be required by the user. As per Clause-4(c), the assessee could terminate the agreement in the event of non-payment of amenity fees for two consecutive months and in that event, lease and license agreement was also liable and considered to be terminated. Upon perusal of these clauses, we find that the two agreements were linked together and part and parcel of the same transactions. The prescribed amenities could not be provided by the assessee independently to the tenants and was co-terminus with lease and license agreement. Further, a bare perusal of nature of services, prima facie, reveals that the said services were of general in nature which is usually provided by the landlord to the tenant. Therefore, amenity charges, in our opinion, being part and parcel of same transaction, were asses sable as Income from House Property. Our view is further fortified by the cited order of the Tribunal where similar view has been taken and which has nowhere been controverted by the Ld. DR before us. Therefore, we hold that the amenity charges earned by the assessee were asses sable under the head Income from House Property against which the assessee was entitled for statutory deduction of 30%.