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2016 (7) TMI 397 - AT - Income TaxDeduction for the electricity charges paid for the renting premises - Held that:- Once the Assessing Officer is accepting the rental income of the properties in the accounts of the assessee, the electricity consumed in such rental properties cannot be attributable to the assessee and if the assessee has paid any expenses in relation to the rental properties, the same are required to be allowed. In view thereof, the disallowances made by the ld Assessing Officer and confirmed by the ld CIT(A) are directed to be deleted and the assessee is held to be entitled to the deduction for the electricity charges. - Decided in favour of assessee. Addition on estimation of rent from Chitra koot land - sole basis of making addition on account of report of Inspector - Held that:- The Inspector has given rate of rent in respect of plots as well as for the party halls/ air conditioned rooms. Thus, in our view, the report can not to be relied upon for any purposes. The ld Assessing Officer has relied upon the report and has concluded that both the plots have been occupied for three months. The ld CIT has also mentioned the size of the land and has also suggested that there are parking problems and locational disadvantages to the assessee and therefore, the big parties cannot adjust in these premises. In our view the order of the ld CIT(A) upholding the addition was without any basis as the very basis of making the addition i.e. the Inspector’s report was in respect of built up air conditioned area and the land appurtenant thereto cannot be relied upon f. Therefore, no clear cut conclusion was required to be placed on record as to the rent which was recovered by the assessee by letting it out for functions and Garba festivals. In our view the estimation made by the ld CIT(A) is a higher side and required to be modified in the light of what is stated hereinabove. We, therefore, reduce it to ₹ 5.00 lacs - Decided partly in favour of assessee Disallowances of foreign tour expenses being personal in nature - Held that:- It is not reliable to the business of the assessee and there is no commercial expediency. It is not the case of the assessee that the foreign travelers are coming to the premises of the assessee for the purposes eating and staying. The assessee has not placed on record any documents to show the marketing was done by him overseas on account of foreign travellings, therefore, all these foreign travels expenses have not rendered to the advancement to the business of the assessee. Therefore, all these expenses are required to be confirmed. Accordingly, we uphold the order of the ld CIT(A). - Decided against assessee
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