Maintenance Charges for Amenities Under Separate Agreements Are Business Income: ITAT Delhi

Advertisement Leon Realtors Pvt. Ltd. Vs ACIT (ITAT Delhi) The ITAT Delhi disposed of cross appeals filed by the assessee and the Revenue for AYs 2015-16 and 2016-17 involving two principal issues: the head of income applicable to maintenance charges received from tenants and the allowability of deduction under Section 24(b) for interest on replacement loans. On the first issue, the Tribunal noted that the assessee had entered into two independent agreements with its tenants—one for letting out the premises and another for providing maintenance services, amenities, car parking and other i...