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2012 (5) TMI 143 - AT - Income TaxBusiness Expenses or Expenditures deductible u/s 23 from rental income - business of builders, contractors & investment in immoveable properties for sale, lease, etc. - In the types business carried on by the assessee, it has to hold the properties to carry on its real estate business of buying and selling. However, till any good opportunity comes, it has given the said premises on lease to earn income. - claim of expenditure incurred on such premises - held that:- annual value cannot be reduced by the amount of expenses because sec. 23(1) clearly talks of annual rent received and the expenditure can be claimed only u/s. 24. - only two types of deductions are possible, namely, 30% of the total annual value and amount of interest paid for acquisition of property. No other deduction is possible and accordingly we hold that the amount of expenditure incurred on account of brokerage, professional consultancy, maintenance, etc., relating to the property is not allowable under the head 'income from house property'. - Decided against the assessee. 'Processing charges' as 'Interest' u/s 2(28A) - definition of 'interest' - held that:- processing charges have to be construed as part of interest in view of the definition of 'interest'. - Decided in favor of assessee.
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