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2021 (3) TMI 1061 - AT - Income TaxIncome from house property - Income received on leasing of land and building - allowing deduction u/s 24F - assessee was not entitled for deduction @ 30% U/s 24A and interest expenses U/s 24B - HELD THAT:- A.O. has failed to pin point any violation of any condition regarding chargeability of income under the head “income from house property”. A.O. was not competent to treat the income earned by the assessee from rentals to be considered under the head “income from other sources”. More particularly when the assessee had fulfilled all basic conditions for treating the income under the head “income from house property” as enumerated in Section 22 - as meticulously gone through the orders passed by the revenue authorities and we found that the ld. CIT(A) while dealing with these amounts have elaborately discussed the provisions of Section 22 of the Act and the ingredients contained therein for treating the income earned by the assessee by giving portion of the property on rent and had rightly concluded that the assessee had correctly shown the said income under the head “income from house property” as the assessee had fulfilled all the basis conditions of Section 22 of the Act for treating the income under the head “income from house property”, therefore, it was rightly held that the assessee was also entitled for deduction U/s 24(a) and 24(b) of the Act. No new facts or circumstances have been brought before us in order to rebut or controvert the findings so recoded by the ld. CIT(A). Therefore, we find no reasons to interfere into or deviate from the findings recorded by the ld. CIT(A). Hence, these grounds raised by the revenue stand dismissed and the order passed by the ld. CIT(A) qua these issues stand affirmed. N.P. on declared sales - Assessee excluded the rent receipts from the net profit - HELD THAT:- In NP rate chart the NP has been shown at ₹ 77,23,674/- which ‘includes’ rent receipts. However, in the above chart which has now been filed by the assessee which ‘excludes’ the rent receipt from the net profit claimed by the assessee. Thus, in our view, the assessee had rightly excluded the rent receipts from the net profit as from the financial statements i.e. from the computation of total income, we noticed that the rental income had been considered separately under the head ‘income from house property’ and on which tax has already been paid. Therefore, in order to avoid double taxation, the assessee had excluded the rent receipts from the net profit which has now been reflected in the above chart which is termed as Annexure-A. Under these facts and circumstances, we direct the A.O. to apply N.P. rate after excluding the rent receipts from the total income of the assessee. With these directions, we restore this issue back to the file of the A.O. for deciding the issue afresh on the basis of above direction.
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