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2018 (11) TMI 693 - AT - Income TaxNature of income - income from renting a properties in Mall - Income from house property or busniss income - allowance of busniss loss - appellant contended that it had set up its business during the year and Mall under construction was capitalized and contended that loss was required to be allowed - CIT(A) held that income of the appellant to be taxed under the head income from house property - Held that:- In similar circumstances, Hon’ble Supreme Court in the matter of Chennai Properties & Investments Ltd. [2015 (5) TMI 46 - SUPREME COURT] decided matter in favour of the assessee holding that income from renting a property of Mall to be treated as business income and in those circumstances, appellant case is fully covered by the aforesaid judgment. ITAT Bench of Mumbai in the matter of Hagwood Commercial Developers Pvt. Ltd.[2017 (2) TMI 626 - ITAT MUMBAI] has also given finding in favour of assessee. To the effect that even if Mall had not commenced business till end of relevant year, assessee had rightly debited general overhead expenses being indirect expenses incurred, in profit and loss account. Thus, we are considered opinion, that in assessee’s case, the income from renting a properties in Mall to be taxed as business income and not income from house property as well as business loss also to be allowed. - Decided in favour of assessee.
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