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2017 (12) TMI 876 - AT - Income TaxAssessment of the rental income - agreement of renting and hiring terrace - “income from house property” OR “income from other sources” - Held that:- It is noticed that the issue under consideration now has been settled by the Hon’ble Jurisdictional High Court in assessee’s own case [2015 (4) TMI 625 - DELHI HIGH COURT] held that the building the top terrace of which is the subject of focal attention here has been developed for its various portions to be sold or let out with no possibility of the terrace floor being subjected to such utilization. The assessee continues to be the owner of the terrace floor. It has conceivably no other purpose to be served by such property as is held on the terrace floor, except the exploitation of the licensed space for gaining the income that cannot be treated as either income from business or income from other sources. The income was thus rightly returned as income from house property. No logic employed by ITAT in rejecting the claim of it being income from house property. The terrace floor cannot exist in the air. It is part of the building which has been constructed on the land beneath the super-structure. It is, therefore, not correct to hold that the terrace does not have any appurtenant land. Thus decide the issue in favour of the assessee. Disallowance of construction expenses of Vikram Tower - Held that:- In the present case, while deciding the first issue relating to the income received by the assessee from the rent of the same building for which the impugned expenses were incurred on account of repair, we have held in the former part of this order by following the judgment of the Hon’ble Jurisdictional High Court that the income to be held under the head house property and deduction u/s 24(a) of the Act for repairs to be allowed. Since, the repairs & maintenance has already been allowed as per the provision contained in Section 24(a) of the Act. Therefore, no separate deduction can be allowed for repairs & maintenance. Accordingly, we do not see any merit in this ground of the assessee’s appeal. Disallowance of expenditure u/s 14A - Held that:- In the present case, it appears that the calculations made by the assessee for making the disallowance u/s 14A of the Act r.w. Rule 8D of the Income Tax Rules, 1962 were furnished first time before the ld. CIT(A) and not before the AO. We, therefore, deem it appropriate to set aside this issue back to the file of the AO to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.
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