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2011 (11) TMI 19 - HC - Income TaxIncome from property - Licence fee - management and day to day running of the properties being used as hotels etc. - ‘Income from business and profession’ or under the head ‘income from house property’ - Deduction of expenses from such income - Held that:- CIT (Appeals) has given detailed factual finding why income earned by the assessee from the three properties is taxable under the head ‘income from business or profession’ and not under the head ‘income from house property’. The reasoning given by the assessing officer is cryptic and she has not considered the relevant aspects. On the basis of findings recorded by her, it is not possible to hold that the finding of fact recorded by the CIT (Appeals)/tribunal are unfounded or unreasonable. - Decided in favor of assessee. Allow-ability of depreciation and other expenses - Held that:- Once it is held that the income from the three properties is taxable under the head ‘income from business or profession’ depreciation has to be allowed under the provisions of Section 32 of the Act. Similarly, disallowance of 80% from the expenses deleted by the CIT(Appeals)/tribunal has been explained and supported by cogent reasoning. Whether the tribunal was right in allowing the appeal of the assessee and deleting addition of Rs.1,89,201/- on account of business development expenses for production of Opera? - Held that:- The order of the tribunal is not clear and in fact contrary to the findings of the CIT (Appeals) as it has been held that they were in agreement with CIT (Appeals) and it is further stated that “we are not inclined to interfere”. This aspect requires fresh consideration and decision by the Tribunal. - Decided partly in favor of revenue.
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