Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 419 - AT - Income TaxRental income and service charges derived by the assessee from shopping mall/business centre - whether to be assessed as ‘Income from House Property’ or ‘Business Income’ - Held that:- The activitivities of the assessee of renting the premises and offering various services was the composite commercial activity and income derived by the assessee from shopping mall/business centre was assessable as business income and not as income from house property. The assessee is accordingly eligible to claim depreciation on the asset and other business expenditure. - Decided in favour of assessee Allocation of cost of amenities - Held that:- AO, though noted that out of the total area of 12100 sq. feet, the assessee had completed only 8,298 sq. feet as on 31.03.04. He, however, allocated the entire cost of amenities to the total area of the project and thereafter calculated the average cost per sq. feet and thereafter attributed the said average cost per sq. feet to 8,298 sq. feet of area. We do not find justification in the above method adopted by the AO. Since the constructed area up to 31.03.04 was only 8,298 sq. feet, hence the cost of amenities for the year under consideration was to be allocated to the actual area constructed and not to the total area of 12100 sq. feet. There is no justification on the part of the AO to allocate the cost of amenities even to the area which was not constructed/in existence during the year. We, therefore, direct the AO to allocate the cost of amenities of ₹ 1,31,98,017/- directly to the constructed area of 8,298 sq. feet and not to the total area of 12100 sq. feet. Disallowance u/s 14A - Held that:- It is not a case where no exempt income was received by the assessee despite making investments for earning exempt income. It is also not the case of the Revenue that the exempt income earned by the assessee was very less or not in proportion to the investments made by the assessee for this purpose. Under such circumstances the different coordinate benches of this Tribunal have observed that in such cases certain percentage of exempt income can constitute a reasonable estimate for making disallowance for the years earlier to assessment year 2008-09. Hence, considering the overall facts and circumstances of the case we restrict the disallowance u/s 14A in the case of the assessee @ 5% of the tax exempt income earned by the assessee during the year. Computation of income of long term capital gains from the sale of M/s. Movie Times - Held that:- he said income cannot be assessed in the year under consideration. However, we agree with the contention of the Ld. D.R. that since it has been contended by the assessee itself that the transfer has taken place in A.Y. 2003-04 and which contention of the assessee has been accepted by the Ld. CIT(A) also hence, in the circumstances, we direct that the proceeds of the sale transaction are to be reduced from the WDV of the block of the assets in A.Y. 2003-04 itself and the assessee will not be entitled to claim of depreciation on the sold part of the asset from the date of sale of the property in A.Y. 2003-04. The deeming fiction of section 50C is not applicable to the transaction in question in the case of the assessee Claim of interest expenditure allowed as revenue expenditure. Treatment of income from car parking charges, compensation and other miscellaneous income - whether the business income or income from other sources - Held that:- In view of our discussion made all these activities were relating to the business activity of the assessee. The Ld. CIT(A) has rightly held that the income earned from the above activities was business income of the assessee. We, therefore, do not find any infirmity in the order of the Ld. CIT(A) in this respect.
|