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2017 (1) TMI 1197 - ITAT MUMBAIIncome earned from running and operation of a Mall and service charges - income from profits and gains of business or as income from house property - Held that:- We find that the issue of whether or not the income earned by the assessee from leasing out of its property and for offering a host of other complex services is to be construed as commercial exploitation of its properties as stated in its objects and therefore to be held to be exigible to tax as ‘business income’ as declared by the assessee or as ‘income from house property’ as held by Revenue, has been considered and adjudicated by a Coordinate Bench of the Tribunal in the assessee’s own case for A.Y. 2009-10. Also see Chennai Properties & Investments Ltd. vs. CIT (2015 (5) TMI 46 - SUPREME COURT) Recovery of common area maintenance and utility expenses - whether constitutes business income from which Municipal taxes paid and the same is allowable as a deduction from business income - Held that:- In view of our holding that the income earned by the assessee from running and operation of Mall and a provision of host of other services and utilities is to be construed as commercial explanation of its properties and is exigible to tax as ‘business income’ as declared by the assessee, we hold that the assessee is entitled to be allowed deduction of Municipal taxes from its business income. Depreciation claimed on the Mall building - Held that:- Following the order of the Coordinate Bench for A.Y. 2009-10 and having held that the assessee’s income earned from running and operation of Mall and service charges etc. is to be taxed under the head profits and gains of business, we hold that in this regard the assessee is entitled for claim of depreciation on Mall building and also brokerage expenses incurred for grant of licence to various users. Disallowance made u/s 14A r.w.r. 8D - Held that:- Following the decision of the Coordinate Bench of the Tribunal in the assessee’s own case for A.Y. 2009-10 which followed the decisions of the Hon'ble Bombay High Court in Reliance Utilities and Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT ) and HDFC Bank Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT), we direct the AO to delete the impugned disallowance made under section 14A r.w. Rule 8D on account of interest expenditure.
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