Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1644 - AT - Income TaxAddition being the difference between the interest paid on the amount borrowed and interest charged on the amount lent to the firm - HELD THAT:- As found from record that assessee's contention to the effect that advance was taken for commercial expediency has not been considered by the AO while disallowing the interest paid to the bank. Keeping in view totality of facts and circumstances of the case, we restore this matter back to the file of AO for deciding afresh as per law. Gain from sale of flats - correct head of income - “business income” OR “capital gain” - HELD THAT:- The property was developed during assessment year 2005-06 whereby 16 flats were constructed. The property was held as investment and is also reflected in the balance sheet under the head “investment”. Further, the main income of the assessee is from Ramanand Kidarnath International where she is a partner. The property was let out to different tenants after the construction having been completed. The assessee has exploited the capital asset by letting out the facts constructed to different tenants and the rental income has been assessed to tax under the head income from “house property‟. The capital asset has been exploited to earn property income and not as stock in trade. The land has been purchased in 2000-01 and it is only in assessment year 2010-11 and 2011-12, 3 flats have been sold. In assessment year 2011-12, two flats have been sold and ¼ of the capital gain has been shown under the head “capital gain‟ in the case of the assessee and other co-owners. In the case of the co-owner i.e. Ravi Goenka HUF, he had declared the gain as long term capital gain and the same has been accepted by the assessing officer. No infirmity in the order of lower authorities for treating the gain under the head “business income‟.
|