Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 314 - AT - Income TaxAddition under the head income from house property - whether the rental income declared by the assessee is composite income including charges for these services also and hence the expenses incurred on these additional services has to be reduced form such composite rental income to arrive at the annual value.Held that:- As decided in assessee's own case for A.Y 2006-07 [2010 (4) TMI 1066 - ITAT DELHI] for the purpose of computing income from house property, rental income in connection with user of house property only is assessable and when charges for other services stand included in such rental income, such additional charges should be reduced from rental income if the quantification of the same is availablethe issue is covered in favour of the assessee in principle and thus we follow the same. However, some recalculation is required at the end of the A.O, therefore the A.O is directed to reduce the expenses incurred by the assessee for rendering additional services to the tenants for arriving at annual rental value and thereafter, on such annual rental value, deduction u/s 24 of the Act @ 30% is to be allowed. The issue is restored to the file of the A.O to recompute the income from house property on the same line as directed by the Tribunal order for A.Y 2006-07. Allowing of set off of loss - Held that:- As decided in assessee's own case for A.Y 2006-07 [2010 (4) TMI 1066 - ITAT DELHI] find that these expenses incurred by the assessee are such which are necessary for the purpose of maintaining registered office of a company to continue its existence and also to comply with the statutory obligations and hence the same is allowable as business expenditure and the resulting loss from business is rightly claimed for set off against income from house property by the assessee and hence we find no reason to interfere in the order of the CIT(A) on this aspect also - Decided in favour of the assessee Addition u/s 14A - Held that:- Since the assessee has not earned any income during the relevant period, hence, no disallowance can be made u/s 14A of the Act. See CIT vs. Holcin [2014 (9) TMI 434 - DELHI HIGH COURT] - Decided in favour of the assessee
|