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2019 (8) TMI 1132 - HC - Income TaxAssessment u/s 153A - whether the amount paid by assessee to ITC Limited at the time of termination of the agreement to manage the hotel, ought to be allowed, as a revenue expenditure ? - entitlement to depreciation @10 % as building - whether it was for acquisition of an intangible asset - HELD THAT:- The Court finds merit in the contention that this aspect of the matter, viz., if the expenditure is not to be treated as ‘capital expenditure’, then it will have to be treated as ‘revenue expenditure’ was perhaps not addressed in the manner it should have been treated by the ITAT. On this aspect, therefore, the Court considers it appropriate to remit the matter to the ITAT for decision afresh on the treatment to be accorded to the expenditure incurred by the Assessee of the aforementioned sum of ₹ 30.86 crores and whether in particular, it should be treated as a ‘revenue expenditure’ or as ‘capital expenditure’. The Court makes it clear that it has not expressed any view one way or the other on the respective contentions of the Revenue or the Assessee on the issue, and, it will be open to the ITAT, after examining the entire records, including the original return filed by the Assessee to come to a fresh decision independent of its earlier decisions and any observations in the instant order. Characterization of income - income shown by the assessee as business income should be taxed as income from house property or as income from other sources? - HELD THAT:- The Court is of the view that the findings both of the CIT (A) as well as the ITAT are consistent that the only business of the Assessee was its hotel business and, therefore, the income shown by the Assessee should be treated as income from house property and not as income from other sources. Consequently, Question (ii) is answered in the affirmative i.e. in favour of the Assessee and against the Revenue.
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