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2015 (8) TMI 38 - AT - Income TaxDisallowance being 30% deduction for repair u/s 24 on rental income - CIT(A) held it as service charges and not rental income - CIT(A)deleting the addition considered by the AO as income from other sources instead of rental income - Held that:- CIT(A) on the issue in question being in conformity with the orders of the ITAT for earlier years and there being no change in facts and circumstances, we see no reason to interfere in the order of ld. CIT(A) to hold that though two agreements had been made for sublicense fee i.e rent and service charges separately, yet the fact remains that no services of any kind were provided by the appellant. To compound the issue, the AO has also failed to bring on record the fact, whether any expenses in respect of the services allegedly provided to Mitsui & Co., were claimed by the appellant. Thus no services were actually provided by the appellant, and factually the so called service charges were nothing but rent received by it. Further, it is settled law that form and substance of the transaction, and not the nomenclature assigned to it, determine the nature of the income . Accordingly, the appellant is eligible to claim standard deduction U/s 24 of the Act from the same and the disallowance so made is deleted - Decided in favour of assessee. Addition of litigation fees paid to some law firms - CIT(A) deleted addition - Held that:- CIT(A) following the Tribunal’s order in assessee’s own case for AY 2007-08 allowed the assessee’s claim as no expenses pertaining to personal litigation or other litigation of the directors were debited in the books of .account of the assessee. If directors were carrying any litigation in: their personal capacity, those expenses were separately debited in the personal account of the partners and not claimed by the assessee company. In the light of categorical finding of ld. CIT (A), in our opinion, it was for the revenue authorities to show from the detail of expenses 'that expenses disallowed related to criminal' proceedings against directors. or were otherwise 'inadmissible and were wrongly claimed by the assessee company.' This has . not been shown, Therefore, on facts and circumstances for the case, we are unable to interfere with the finding of the ld . CIT(A) that no inadmissible expenditure was claimed by the appellant under the head 'litigation expenses'. Addition 'made was rightly deleted - Decided in favour of assessee. Disallowance of depreciation on the basis of a finding given in the block assessment order - CIT(A) deleted addition - Held that:- The order of the ld. CIT(A) on the issue in question being in conformity with the orders of the ITAT for earlier years and there being no change in facts and circumstances, we see no reason to interfere in the order of ld. CIT(A) on the issue in question. - Decided in favour of assessee.
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