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2019 (1) TMI 988 - AT - Income TaxDisallowance of the carry forward of the Business loss - provisions of section 14A r.w.r 8D applicability - as per revenue no business activity was being carried out by the assessee during impugned AY - receipts in the shape of dividend, interest and liabilities not payable were treated as Income from Other Sources against which the assessee was allowed expenditure - income from office premises was assessable as Business Income or Income from House Property? - Held that:- We are of the considered opinion that both the lower authorities have failed to clinch the issue in the proper perspective and therefore, we have no option but to remit the matter back to the file of AO for proper appreciation of the facts and re-adjudication as per law. It is made clear that income from office premises shall be assessed as per the statutory provisions depending upon the fact that whether the same is assessed as Income from House Property or as Business Income. The dividend income of ₹ 0.47 Lacs has been claimed as exempt, against which, disallowance u/s 14A, if deemed fit as per circumstances, may be computed. The liabilities not payable, prima-facie, seems to be of the nature covered by Section 41(1) and therefore assessable as Business Income. The interest on tax refund shall be assessable as Income from Other Sources. Whatever stand is adopted by lower authorities with respect to office premises, the expenditure found necessary to maintain the corporate personality / identity shall be allowable under the head Business Income. The deductibility of other expenditure including depreciation shall be ascertained at the threshold of stand of lower authorities with respect to fact that whether the income from office premises was assessable as Business Income or Income from House Property. - Appeal allowed for statistical purposes.
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