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2022 (2) TMI 426 - ITAT CHENNAIValidity of Reopening of assessment u/s 147 - HELD THAT:- We find that the assessment was reopened by issuing notice under section 148 of the Act on 27.03.2015 and after following due process, the assessment was completed u/s 143(3) r.w.s. 147 of the Act dated 11.03.2016, which is well within four years of time limit provided in the statute. Accordingly the ground raised by the assessee is dismissed being devoid of merits. 50% disallowance of depreciation - AO was of the opinion that the assessee was using only 50% of the balance factory building and thus, the assessee is eligible for 50% of depreciation on factory building - The entire income which accrued and was assessed was from letting out of these properties and there was no other income of the assessee except the income from letting out of these two properties. Therefore in M/S CHENNAI PROPERTIES & INVESTMENTS LTD [2015 (5) TMI 46 - SUPREME COURT] has held that the rental income earned by the assessee cannot be treated as “Income from the house property”. Whereas, in this case, the assessee is engaged in manufacturing of automobile components and let out 50% of its factory building on lease and earned rental income. CIT(A) has rightly held the rental income as income under the head “house property”. Having the rental income held as income under the head “house property”, the assessee is not eligible for claim of depreciation on the let out portion. We find no infirmity in the order passed by the ld. CIT(A) and thus, the grounds raised by the assessee are dismissed.
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