A.R.Builders Pvt Ltd., CHENNAI V. DCIT Company Circle 1(1), CHENNAI

ITA 1827/CHNY/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8464 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 28-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE SINCE LAST MANY

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय -ी महावीर िसंह, उपा34 एवं माननीय -ी मनोज कु मार अ9वाल ,लेखा सद< के सम4। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1827/Chny/2018 (िनधाEरण वषE / Assessment Year: 2006-07) M/s. A.R. Builders Pvt. Ltd. No.41, Sattanna Naicken Street, Nehru Timber Market, Choolai, Chennai-600 112. बनाम/ V s. DCIT Company Circle-1(1), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAC C A-5 2 8 6 -F (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : None थ की ओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) –Ld. DR सुनवाई की तारीख/ Date of Hearing : 22-02-2022 घोषणा की तारीख / Date of Pronouncement : 22-02-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2006-07 arises out of the order of learned Commissioner of Income Tax (Appeals)-1, Chennai [CIT(A)] dated 29-03-2018 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.143(3) r.w.s. 147 of the Act on 15-11-2010. ITA No.1827/Chny/2018 - 2 - 2. None appeared for assessee. The perusal of order sheet entries would show that none is appearing for assessee since last many occasions. Left with no option, we proceed to adjudicate the appeal of the assessee. In this appeal, the assessee is aggrieved by confirmation of addition of Rs.5.25 Lacs which are adjudicated in succeeding paragraphs. 3. The assessee being resident corporate is stated to be engaged in the construction & trading activities. The assessee earned rental income along with maintenance charges. However, no income was admitted out of maintenance charges rather the maintenance charges were matched against the expenses and net balance / surplus was shown as liabilities in the Balance Sheet. The Ld. AO opined that surplus would be the income of the assessee. The assessee submitted that during the year, the assessee paid excess amount of Rs.3.35 Lacs. However, considering the facts that the assessee had overall surplus of Rs.5.25 Lacs in the account, Ld. AO added the same to the income of the assessee as ‘income from other sources’. The same was keeping in view the fact that the assessee had undertaken to maintain the common facilities in the building. 4. During appellate proceedings, the assessee merely submitted that the maintenance charges were not in the nature of income. The Ld. CIT(A), finding that similar disallowance was confirmed in appellate order for AY 2008-09, confirmed the stand of Ld. AO. Aggrieved, the assessee is in further appeal before us. 5. We find that no new material has been placed before us. Prima- facie the assessee has surplus in the maintenance account and as per the agreement, the assessee was obligated to maintain the common ITA No.1827/Chny/2018 - 3 - facilities in the building. Therefore, the resultant surplus would become income of the assessee unless it was shown that the surplus was refundable to the occupants of the building. No such facts have been demonstrated. Therefore, we confirm the impugned order. 6. The appeal stands dismissed. Order pronounced on 22 nd February, 2022. Sd/- (MAHAVIR SINGH) उपा34 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद< / ACCOUNTANT MEMBER चे(ई / Chennai; िदनांक / Dated : 22-02-2022 EDN/- आदेश की Xितिलिप अ 9ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF