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In 259ITR389 the assessee received besides rental income also received service charges and claimed even such as income assessable under the head house property. The assessing officer assessed such sum as income from other sources. Upon perusal of Explanation to section 23(1) the Madras High Court held that there is no room for adding other amounts received by the owner of the building as representing the value of the service charges rendered by him to his tenants as income from house property, when the neither the tenant nor the owner intended payment of such service charges to be a part of rent payable for the occupation of the premises by the tenants.


In 259ITR567 the assessee recovered separate payments for rent and amenities but offered them together as business income. The Kerala High Court held that one part is assessable as property income and the other as business income.


The Hyderabad bench in 39SOT406 further held that letting of building with certain amenities such as lighting, air-conditioning, cafeteria, transformer, etc., does not warrant splitting of rent so as to invoke the provisions of section 56 (2) (iii ).


The Kerala High Court in 13ITR-OL 422 in the context of an assessee running a mall held that where the assessee exploited its immovable property for commercial activities, provided shopping facilities to customers as a commercial activity, maintained the common areas and provided facilities in the mall then his income would e assessable under the head business.

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