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2017 (6) TMI 1254 - AT - Income TaxDisallowance of the claim of expenditure - Held that:- From the order of the Ld.AO and the Ld.CIT(A), the entire facts of the case are not clear. The assessee has also not produced before us any documents such as the agreement between the assessee and the societies, the resolution passed by the society in its general meeting, the nature of work executed by the society, the reasons for the loss incurred by the society, the reasons for the society not to repay the loan, etc.. Thus the genuineness of the transaction has not been brought out vividly by the assessee before us and it is not clear from the Orders of the Ld. Revenue Authorities. Therefore, in the interest of justice, we remit back the matter to the file of AO for fresh consideration. Disallowance U/s. 14A r.w.r. 8D - Held that:- Revenue Authorities had invoked the provisions of Section 14A r.w.r 8D of the Rules, because the assessee had made investment for earning exempt income and the expenditure relating to such investment was not disallowed by the assessee. We do not find any infirmity on the order of the Ld. Revenue authorities on this issue because they have only followed the provisions of the Act. Therefore the order of the Ld.CIT(A) and the Ld.AO on this issue is hereby confirmed. Assessment of rental income under the head ‘business income’ OR 'Income from house property' - Held that:- Only with respect to the rental income of ₹ 46,76,622/-, the assessee has received rental income from its employees for providing quarters. All other rental income is with respect to third parties and the circular has no bearing on them. Therefore, we hereby hold that the rental income received from the assessee’s employees for providing quarters to the extent of ₹ 46,76,622/- shall be treated as business income and the balance amount shall be treated as ‘income from house property’ as per the provisions of the Act.
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