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2018 (4) TMI 263 - AT - Income TaxTreating to rental Income - Income from House property or Business Income - Held that:- The issue is covered in favour of assessee and the Tribunal’s order for AY 2005-06 had attend the finality because the assessee has not preferred an appeal before the Hon’ble High Court. As the issue is covered, we confirm the orders of the lower authorities treating the rental receipts as income from house property. Accordingly, this common issue of assessee’s appeals is dismissed. Disallowance of depreciation on the above issue, which has been decided against the assessee by treating the rental receipts as income from house property, this being a consequential issue, the same is dismissed. Disallowance of maintenance expenses - AO has disallowed the expenses because the assessee’s income is assessed as income from house property - Held that:- We find that this issue has not been adjudicated by CIT(A) despite specific ground raised before him. However, this issue needs to go back to AO for the simple reason that it is to be verified whether these expenses are claimed by assessee net of the rental receipts or these are inclusive in the gross receipts. In case these are inclusive of gross receipts, the AO has to take ALV of the property excluding these expenses. For re-deciding this issue, the matter is set aside to the file of the AO Addition of difference amount of closing stock valuation considering inclusive method of Modvat under section 145A - Held that:- The amount of Modvat credit was irreversible credit offered to manufacturers upon purchase of duty paid raw materials and that would not amount to income. See CIT vs Diamond Dye Chem Ltd. [2017 (7) TMI 616 - BOMBAY HIGH COURT]
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