Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 593 - AT - Income TaxCompute the income from House Property on the basis of municipal value - Held that:- We find that the CIT(A) following the orders of the Tribunal in the assesses own case for A.Ys 2006-07 and A.Y. 2007-08 (which as on date had been upheld by the Hon’ble High Court), had directed the A.O to ascertain the municipal rateable vale of the property for the year under consideration and compute the income from house property by taking the ‘annual value’ of the property at such municipal rateable value. We find that the CIT(A) had also as a word of caution directed the A.O to keep in mind that though the market rateable value of the property was ₹ 12,60,000/- in the earlier year, however, the same pursuant to efflux of time might had changed. We have given a thoughtful consideration to the issue before us and are of the considered view that as the CIT(A) had merely followed the order of the Tribunal passed in the assesses own case for A.Y. 2006-07 and A.Y. 2007-08, which as on date had been affirmed by the Hon’ble High Court, therefore, no infirmity arises from his order in respect of the issue under consideration. We thus, in light of the aforesaid facts uphold the order of the CIT(A) in respect of the issue under consideration. The Ground of appeal No. 1 raised by the revenue before us is dismissed. Disallowance u/s 14A r.w Rule 8D - Held that:- The scope of disallowance of expenses incurred for earning of exempt incomes was required to be read and applied in context of Sec. 14A, which requires that the expenditure actually incurred in earning of such exempt income, and nothing more than such expenditure could be disallowed. We find ourselves to be in agreement with the contention of the ld. A.R that the very purpose sought to be achieved by the legislature by making available the machinery proviso, i.e Rule 8D, cannot be lost sight of while computing the disallowance under Sec. 14A. Disallowance under Sec. 14A cannot exceed the expenditure actually claimed by the assessee. We find ourselves to be in agreement with the aforesaid view taken by the Tribunal in the assesses own case, as well as the other cases on which reliance had been placed by the ld. A.R. We have given a thoughtful consideration to the order of the CIT(A) and do not find any infirmity in his order, to the extent the latter had reduced the further disallowance of ₹ 1,38,37,713/- made by the A.O u/s 14A to an amount of ₹ 15,41,788/-, with a consequential relief of ₹ 1,22,95,925/- [i.e ₹ 1,38,37,713 (-) ₹ 15,41,788/-] to the assessee. Increased the ‘book profit’ under Sec. 115JB by the amount of disallowance made under Sec. 14A. - Held that:- As the disallowance under Sec. 14A was already restricted by him to the extent of the actual expenses debited in the Profit & loss account, he therefore directed the A.O to increase the ‘book profit’ only to the extent of disallowance of ₹ 37,11,208/- sustained by him in the hands of the assessee under Sec. 14A.
|