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2015 (4) TMI 400 - ITAT DELHIIncome from letting of a property - Income from house property or profits and gains of business and profession - Held that:- Undisputedly in the earlier assessment years, coordinate benches have held that the income from letting out is in the nature of income from house property. Once there are categorical findings to this effect, and there is no dispute on that fact, it is not open to the lower authorities to still hold that the income can be taxed as business income because that aspect of the matter was not examined. The reason of consistency in approach and bound by the judicial precedent by the coordinate bench also, we hold that the income from letting out the property ought to have been taxed under the head ‘income from house property’. Thus we uphold the plea of the assesse and direct the Assessing Officer to tax the rental income of ₹ 6,59,36,930 under the head ‘income from house property’ and allow the deduction under the scheme of taxability of income under this head. - Decided in favour of assessee. Disallowance of brand building expenses - CIT(A)deleted the addition - Held that:- what the Assessing Officer has overlooked is that even under the mercantile method of accounting, the expenses are booked at the point of time when the liability to pay crystallizes and irrespective of whether the benefit are wholly in the current year, or partly in future year as well, a revenue expenditure is allowed as a deduction in the year in which it is incurred. The contribution pertains to the current year and is based on the revenues of the current year. It is undisputed that that it covers the period related to the relevant previous year. There is no dispute that expenditure is a revenue expenditure, there is no dispute that the expenditure is incurred in the present year, there is no dispute that all along even the increased contributions have been allowed as revenue expenses in the year in which the contributions have been made and to which contributions pertain. In such circumstances, a purely adhock disallowance on the basis that the benefits of this contribution will also be available in a subsequent period, is wholly uncalled for. We are unable to see any merits in this same.We have also noted that the expenses are partly allowed as deduction. Therefore, genuineness, revenue nature and business expediency of these expenses is accepted by the Assessing Officer himself. - Decided in favour of assessee.
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