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2012 (5) TMI 419 - ITAT, MUMBAIValidity of reopening - Business income or house property - income from business centre - Held that: he notice u/s 148 of the Act dtd. 23.3.2006 was served on the assessee on 24.3.2003 which is within a period of 6 years from the end of the relevant assessment year. - in view of the decision of the Hon'ble Supreme Court in the case of Rajesh Jhaveri Stock Brokers (2007 -TMI - 6563 - SUPREME Court) the reassessment proceedings initiated by the A.O. and upheld by the Ld. CIT(A) are valid Regarding business income or house property income - Held that:- the receipts from business centre as income from house property. - decision of Shambhu Investment (2001 (3) TMI 77 (HC)) and various other decisions followed.- Decided against the assessee Reimbursement of expenses - Income from House Property - the reimbursement of Telephone and electricity expenses should be excluded from the business centre receipt. - Appeal is allowed by way of direction to the A.O. to exclude an amount of Rs.3,82,700/- from the business centre receipt while calculating the business centre receipt as "income from house property" Allowance of depreciation and other expenditure - held that:- the assessee is entitled to deduction u/s 24(1) and considering the fact that part of the expenditure relating to earning of business centre income might have been included in the expenses debited, therefore, in our considered opinion, the entire expenditure cannot be allowed as deduction. Similarly, since the assessee is only partially utilizing the premises at Parel for conducting its business and also getting rental income from the said premises, therefore, in our opinion, full depreciation cannot be allowed on the Parel premises Income from financing activity - AO treated the income under the head income from other sources - held that:- assessee that the assessee in a systematic and organized manner had started the business of financing activity which is in line with one of the main objects of the Memorandum of Association and as per the resolution passed by the board of Directors. Therefore the income from financing activity, in our opinion, has to be treated as "business income".
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