A.R.BUILDERS PVT LTD.,CHENNAI vs. DCIT COMPANY CIRCLE 1(1), CHENNAI

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.

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.

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.

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