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2018 (11) TMI 1004 - AT - Income TaxAmenity charges received - taxable under the head ‘Income from other sources’ OR ‘Income from house property’ declared by the assessee - Held that:- We find that the co-ordinate bench has considered similar issue and after considering relevant facts has held that amenity charges received is assessable under the head, ‘Income from other sources’. ITAT has also considered the alternative plea of the assessee insofar as treating the amenity charges as advance and held that there is no merit in the claim of the assessee that these are advances received as the said charges have been received in pursuance to an agreement and hence, the AO was right in assessing amenity charges under the head, ‘Income from other sources’. CIT(A) was right in confirming the action of the AO in assessing amenity charges under the head ‘Income from other sources’. Disallowance of total expenses claimed under the head, ‘Administrative & other expenses’ - Held that:- In this year, the AO has disallowed similar expenses without there being any change in facts. The assessee ought to incur expenses even though there is no business activity to maintain corporate status of the assessee like audit fees, postage expenses, telephone charges and other day today expenses. Since the expenditure incurred by the assessee are in the nature of general administrative expenses, which are required to be incurred even though there is no business activity, we are of the considered view that there is no reason for the AO to disallow the said expenses, when he has allowed similar expenses in the past. We delete addition made by the AO towards disallowance of total expenses claimed by the assessee under the head ‘Administrative & other expenses’ including depreciation, legal and professional fees and direct him to allow business loss as claimed by the assessee. Appeal filed by the assessee partly allowed.
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