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Sections 22 of Income Tax Act, 1961— Income from house property – Appeals by assessee for assessment years 2011-12 to 2013-14 contest common order of CIT(Appeals), order dated 09/o1/2017. The ground raised in all the years are identical and it is admitted position that adjudication in any of the year would apply to other years also. Assessee being resident corporate assessee stated to be engaged as builder and developer was assessed for year under consideration u/s. 143(3) on 20/03/2014 wherein the income of the assessee was determined after certain additions / adjustments as against returned income filed by the assessee on 29/07/2011 which was later on revised to claim deduction of service tax . During assessment proceedings, it transpired that the assessee had entered into two agreements with M/s Diesel Fashion India Reliance Pvt. Ltd. (DFIRPL). One agreement was for leave and license agreement whereas the other agreement pertained to amenities charges in respect of same property.
On the facts and circumstances, Tribunal held that the clubbing of rental & amenities income of 6 persons, in the hands of the assessee, would not be sustainable in the eyes of law. The Assessing officer was directed to recompute the income by taking assessee’s share of rental income and amenities charges under the head Income from House Property. The rental income of earned by the assessee would also be taxable under the head Income from House Property. The statutory deductions, as available as per law, shall be provided to the assessee. Accordingly, the appeal stands allowed.
Facts were pari-materia the same in these years. The impugned order was common order for all the three years. The assessee was before tribunal with similar grounds of appeal. Therefore, the adjudication as for AY 2011-12 shall mutatis-mutandis apply to both these years. Accordingly, both the appeals stand allowed. All the appeals stand allowed.--- NANAVATI CONSTRUCTIONS vs. Deputy CIT.  23 ITCD Online 43 (MUM)