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2013 (8) TMI 1005 - AT - Income TaxRental income - Head of income - assessee’s income from incubation project as ‘business’ income or from ‘house property’ - Held that:- The hon’ble jurisdictional high court in the case of M/s. Elnet Technologies Ltd (2012 (11) TMI 671 - MADRAS HIGH COURT ) has squarely decided the issue in favour of the assessee wherein it has been held that in case of a company providing software infrastructural facilities on lease in lieu of rent payment, the receipt is ‘business’ income instead of that from ‘house’ property. In the course of arguments, the Revenue has not been able to cite any distinguishing features. Accordingly, we rely upon the said decision and decide the issue in favour of the assessee. Allowability of expenditure - Held that:- The assessee is entitled for the expenses in question. We also find that the Commissioner of Income Tax (Appeals) has already issued necessary directions to the Assessing Officer to allow ‘revenue’ expenditure and also to capitalize the expenses which are not in the nature of current repairs. In our opinion, since the Commissioner of Income Tax (Appeals) has issued appropriate directions to the Assessing Officer to verify the nature of the expenses, we affirm with the same and leave the Assessing Officer to act as directed by the Commissioner of Income Tax (Appeals).
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