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2017 (12) TMI 1044 - AT - Income TaxAssessment of leasing charges of machinery - under the head income from other sources OR income from business - Held that:- The facts on record suggest that the assessee’s mining business is almost permanently closed. In view of these factual matrix, we hold that the income from leasing out of the machinery to the sister concerns shall be assessed as income from other source. In view of this, we uphold the order of the ld. CIT(A) on this issue. However, the assessee had made an alternate submissions that the loss incurred by the assessee company under the various heads of expenses should be allowed from the income assessed under other heads of income. From the records we observe that the genuineness of these expenses debited in P&L account have not been verified by the authorities below. Prior to considering the allowability of these expenses. The genuineness and business requirement of the assessee needs verification. Therefore, for the verification of the genuineness of the expenses and also the justification of the expenses for business requirement of the assessee, the issue is restored back to the file of the Assessing Officer. Disallowance of various expenses under the head dead rent,Environment expenses and salary and wages paid - Held that :- With regard to the claim of these expenses, we have already decided that the issue that these requires verification at the level of the Assessing Officer with regard to the genuineness and justification of the expenses for business of assessee, therefore, this ground of appeal is also restored back to the file of the Assessing Officer
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