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2016 (7) TMI 133 - ITAT MUMBAI(I) While computing annual value of property which has been let out - disallowance made on account of brokerage charges, legal expenses, maintenance charges and insurance expenses being not as per section 24. (II) Expenses, which were not incurred wholly and exclusively for the purposes of earning the income from other sources, cannot be allowed deduction u/s 57 Held that:- The claim of the assessee in respect of brokerage charges and legal expenses, of the property are not as per the provisions of section 24 of the Act which deals with allowable deductions while computing the income of the house property. We therefore, do not find any merit in the case of the assessee and the arguments as advanced by the ld.AR and dismiss this ground of assessee by upholding the order of ld. CIT(A) on this issue. - Decided against assessee Allowability of expenditure u/s 57 - nature of income - assessee had claimed the expenses against the receipt of interest of FDRs, commission, speculative profit and loss from shares - AO was of the opinion that only receipt in the nature of business arising out of speculation in shares and the remaining receipts were in the nature of income of other sources and accordingly held that the expenses were not allowable u/s 57 - Held that:- the activity of the assessee of investing money in the FDRs in the banks in no way can be treated as receipt from the business and we agree with the view taken by the lower authorities that the same has to be taxed under the head income from other sources and was rightly assessed so. So far as admissibility of various expenses aggregating to ₹ 21,06,469/- is concerned, we are of the view that having regard to the nature of expenses, these were not incurred wholly and exclusively for the purposes of earning the income from other sources in order to be qualified for deduction u/s 57 of the Act which deals with the deduction of expenditure from the income and other sources. After considering facts and circumstances, we are of the opinion that the order passed by the ld. CIT(A) is correct and accordingly, we uphold he order of the ld. CIT(A) by dismissing the appeal of the assessee on this issue.- Decided against assessee
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