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2010 (12) TMI 695 - ITAT, MUMBAIBusiness income/other sources - In the present case no case has been made out that any business advances had been temporarily put in short term deposits pending utilization in the business - assessee had deposited the surplus funds from which interest income had been received - Therefore interest income is treated as other sources Regarding rental income of business centre - assessee had taken the premises on lease on month to month basis and after developing the same as business centre had sublet the same to different corporate entities along with facilities - The property has been let out with various facilities and amenities for corporate clients such as board room facilities, letters receipt/dispatch facilities, computer with internet facilities, security arrangements in addition to telephone and electricity and water facilities etc. The income has therefore to be assessed as business income Regarding disallowance of co-sponsorship fees - The dispute is regarding nature of expenditure on account of payment of Rs.9 lacs to RPG Academy of Art and Music by the assessee - once the business centre is fully occupied on long term basis there is no question of making any payment for publicity. Obviously the assessee had made the payment as a donation to RPG Academy of Art and Music which could not be held as expenditure incurred wholly and exclusively for the purpose of business - Decided against the assessee Regarding set off/carried forward - Held that: under the provisions of section 72 the brought forward loss/depreciation has to be adjusted against the business income and in case the loss is not fully set off against business income it shall be carried forward to the subsequent year. The brought forward loss in our view cannot be set off against the income from other sources or capital gain.
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