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2013 (10) TMI 644 - ITAT MUMBAIClassification of Income – Income from House Property u/s 22 OR Income from Other Sources u/s 56 – Held that:- The compensation received by the assessee under the agreement was essentially for use of her licenses and other assets and there being no business risk assumed by the assessee, the compensation received by her under the agreement was not her business income - one of the assets given by the assessee for use in the restaurant business was building premises and since the assessee was the owner of the said main asset, the compensation received by the assessee to the extent attributable to the use of building premises is chargeable to tax under the head "income from house property" while the compensation received for other assets and licences is chargeable to tax under the head "income from other sources" - As there is no such bifurcation of compensation indicated in the relevant conducting agreement, we direct the assessee to make such bifurcation on some reasonable basis and the A.O. is directed to verify the same and bring to tax the compensation attributable to the use of building premises under the head "income from house property" and for use of other assets and licences under the head "income from other sources". Disallowance of Expenses – Held that:- Since it is already held that the receipts under the conducting agreement did not constitute business income of the assessee, the consequential disallowance on account of expenses made by the A.O. is liable to be confirmed - the disallowance is confirmed – Decided Partly in favour of Assessee.
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