Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 729 - AT - Income TaxUndisclosed Rental Income – CIT(A) deleted the addition - Held that:- According to the rent agreement, if the figure of 10% increase is used, the rent receivable from 7.12.2006 onwards should have been Rs. 63,888/- p.m. Similarly, the rent receivable from 7th December, 2007onwards should have been Rs. 70,2777- as per the rent agreement.However, the assessee is only showing rental income of Rs. 55,000/- p.m. in the return of income - As per the agreement actual rent receivable is to be ascertained with reference to the relevant clause of the Rent Agreement, as relied upon by the AO. The CIT(A) has not disputed the correctness of the said clause. Also the said agreement has been entered by the concerned party at will and voluntarily, therefore, there is no statutory bar u/s 23(1) to exclude the said express terms, for the purpose of enhancement of rent in the said Rent Agreement. Having regard to factual matrix of the case, documentary evidence in the form of Rent Agreement cannot be ignored and, hence, the findings of the CIT(A) are reversed and findings of the AO restored - in favour of revenue. Subsidy receivable – Capital vs Revenue Receipts – Held that:- A bare perusal of the Office Memorandum issued by Govt. of India dated 07.01.2003, as reproduced above, clearly reveals the eligibility for such capital investment subsidy @ 15% of their investment in Plant & Machinery subject to ceiling of Rs.30 lacs. The subsidy is also avai lable to the existing units, on their substantial expansion - following case of CIT V Ponni Sugars & Chemicals Ltd. (2008 (9) TMI 14 - SUPREME COURT) that subsidy for repayment of capital loan is capital receipt. It was held by the Hon'ble Apex Court that where main eligibility condition in scheme, under which assessee Sugar Mill was granted subsidy, was that subsidy must be utilized for repayment of loans taken by assessee to set-up new unit or for substantial expansion of existing unit. In such a situation, the subsidy is in the nature of capital receipt and not exigible to tax - in favour of assessee Capitalization of Water and Electricity Expenses - Held that:- Copy of account, from which addition has been made, represents details of electricity expenses, which had already been transferred to pre-operative expenses under the head Fixed Assets and no deduction has been claimed in the Profit & Loss Account. Having regard to such contention of the assessee, duly supported by documentary evidence, CIT(A) deleted the addition in respect of such transferred pre-operative expenses - no infirmity in the findings of the CIT(A), and hence, the same are upheld - against revenue.
|