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2016 (11) TMI 1153 - AT - Income TaxAssessment of income from mall operation - “income from house property” OR "business income" - Held that:- We notice that the assessee has constructed a shopping mall as per its objects for which it was incorporated and has derived income from running and maintaining the shopping mall. The activities carried on by the assessee, which are extracted above, would show that the assessee is carrying on the activities as its trading/commercial activity. As decided in PFH Mall & Retail management Vs. ITO (2007 (5) TMI 258 - ITAT CALCUTTA-A ) income from Mall operation is assessable as business income, since various services & facilities as well as other amenities similar to company’s operations are provided by the assessee. Further the activities are carried on continuously in an organized manner with a set purpose and with a view to earn profit. Thus we set aside the order passed by Ld CIT(A) on this issue and direct the AO to assess the income from Shopping Mall as business income. Disallowance made u/s 14A - Held that:- We are of the view that the claim of the assessee that the investment was made only of Share application money needs factual verification. Accordingly we restore this matter to the file of the AO with the direction to examine the factual aspects and decide this issue by following the decision rendered by the jurisdictional High Court in the case of HDFC Bank Ltd (2014 (8) TMI 119 - BOMBAY HIGH COURT). With regard to the disallowance to be made out of administrative expenses, we direct the AO to make disallowance on a reasonable basis, after considering the explanations of the assessee. The order passed by Ld CIT(A) on this issue is set aside accordingly. Disallowance of Service tax liability u/s 43B - Held that:- Since the claim of the assessee that the outstanding service tax liability has not accrued as on the last day of year, requires verification, we restore this issue to the file of the AO with the direction to examine the factual aspects and decide the issue by following the decision rendered by jurisdictional High Court in the case of Ovira Logistics P Ltd [2015 (4) TMI 684 - BOMBAY HIGH COURT]
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