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2010 (6) TMI 512 - AT - Income TaxIncome from house property or other sources or business income - Unaccounted cash credit - Set off and carry forward of losses - Held that:- The main intention of the assessee as is evident from the terms and conditions of the relevant agreements was to derive income by the exercise of property rights in the form of fixed monthly rent - The property thus was given by the assessee on leave or licence basically for earning income there from in the form of rent and the character of income so derived was income from house property falling u/s 22 as held by the authorities below - On this basis, the rental income, can reasonably be bifurcated as 80% for land and building and 20% for other assets and the same can be taxed under the head “income from house property” and “income from other sources” respectively Deduction of expenses - assessee is claimed to have incurred the major expenditure on account of interest in respect of funds borrowed for acquisition of assets - On verification, if it is found that the corresponding funds were borrowed for acquisition of land and building, the interest paid thereon has to be allowed as deduction while computing income from house property - matter remanded back for verification. Regarding unaccounted cash credit - no opportunity was specifically given to the assessee either by the A.O. or by the ld. CIT(A) to produce the cash book in order to establish the availability of cash on the relevant dates to make deposit in the bank account - Decided in the favour of the assessee by way of remand Regarding set off of brought forward business loss and unabsorbed depreciation is consequential to the main issue relating to the head of income under which rental income is chargeable to tax - the assessee will not be entitled to claim any set off of brought forward business loss and unabsorbed depreciation since there is no income chargeable to tax in its hands under the head “profits and gains of business - Decided against the assessee
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