Case Law Details
Nirmala Zaverchand Shah Vs DCIT (ITAT Mumbai)
The issue under consideration is whether amenities being part and parcel of building will be tax under head ‘Income from house property’ or ‘Income from other sources’?
ITAT states that, the amenities available in the building was RCC Frame Structure, Marvel/granite in the common areas, lobbies, etc, Kotah in staircases, two elevators, control room: CCTV in common areas, water supply, electricity, AHU Room and Fire Control System. If the nature of these amenities are analyzed, these are clearly part and partial of the building. Both the agreements of leave and licence and other for amenities are composite one and one cannot be enforced without the other. These are the basic agreement and are integral part to use of licence premises and their uses coextensive/coterminous, therefore, these cannot be segregated, thus, the charges for amenities were rightly held to be income from house property, thus, the claimed deduction is also allowable, therefore, ITAT direct the Assessing Officer to consider this income under the head income from house property and not income from other sources. The orders of lower authorities are reversed on this ground and the appeal of the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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