Reimbursement of CAM Charges from Tenant Not Taxable as Rental Income

Lysa Trading LLP Vs ITO (ITAT Ahmedabad) In a recent judgment, the Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, ruled in favor of Lysa Trading LLP, asserting that the recovery of common area maintenance charges (CAMC) from a sub-tenant, when demonstrably offset against expenses incurred by the assessee, should not be treated as rental income taxable under “income from house property.” The tribunal’s decision overturned the orders of both the Assessing Officer (AO) and the Commissioner of Income-Tax (Appeals) (CIT(A)), National Faceless Appeal Centre (NFAC), Delhi. T...