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2016 (11) TMI 1248 - AT - Income TaxProfits and Gains from Business or Profession - assessment of income - business activity - claim of depreciation on assets - Held that:- The assessee in our considered view is involved in a systematic activity of exploiting its asset, which in turn it had taken on lease , is thus involved in carrying on business activity. Thus, the income arising there from such business activity is to be assessed to tax in the hands of the assessee under the head ‘Profits and Gains from Business or Profession’ as income from business. The assessee is entitled for claim of expenditure including depreciation of assets but not on the building , as the building was leased by the assessee wherein the assessee is not the owner as deduction against such business income . The case of the assessee is covered by the decision of Mumbai Tribunal in the case of Shreenath Balaji Computech Private Limited v. ACIT [2015 (6) TMI 1089 - ITAT MUMBAI] wherein the Tribunal held the said income from leave and license fee as well maintenance charges as income from business to be brought to tax as ‘Profit and Gains of Business or Profession’ and also allowed the claim of depreciation on assets except on building which was leased by the tax-payer in that case , as the facts in the instant case are similar. Treatment to loss - sale of securities under ‘Portfolio Management Services’ - Business loss or short term capital loss - assessee is aggrieved that the learned CIT(A) enhanced assessment without affording opportunity of being heard to the assessee - Held that:- The power of learned CIT(A) is co-terminus with powers of the AO which include power of enhancement of the assessment by the learned CIT(A) but principles of natural justice are to be adhered to and the learned CIT(A) ought to have given proper opportunity of being heard to the assessee in accordance with principles of natural justice before enhancing of the assessment. Thus in order to do complete justice in the matter, this issue is to be set aside and restored to the file of the learned CIT(A) to de-novo adjudicate the issue on merits after affording opportunity of being heard to the assessee. Needless to say that proper and sufficient opportunity of being heard shall be provided by learned CIT(A) to the assessee in accordance with principles of natural justice in accordance with law.
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