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2019 (10) TMI 11 - ITAT PUNECharacterization of income - Income from giving furniture on hire - 'Income from Other Sources’ - assessee has claimed income from giving furniture on hire under the head ‘Business Income’ - HELD THAT:- A perusal of documents on record clearly indicate that furniture has been shown as business asset of the assessee and a separate agreement has been executed for giving furniture on hire. Taking into consideration entirety of facts and principle of consistency, we find merit in the submissions of assessee. CIT (Appeals) have erred in holding income from hiring of furniture as ‘Income from Other Sources’. Furniture and fixtures are business assets of the assessee, hence, income generated from giving furniture on hire is business income of the assessee. The ground No. 2 of the appeal is allowed. Disallowance of business expenditure - authorities below have disallowed business expenditure claimed by the assessee on the premise that the assessee is not carrying any business activities hence, there can be no business expenditure - HELD THAT:- While adjudicating ground No. 2 of the appeal here-in-above, we have held that income from hiring of furniture is ‘Business Income’ of assessee. Thus, the observation of lower authorities that the assessee is not carrying any business activity is contrary to the facts. In principle, we hold that the expenditure claimed by the assessee in running of business is allowable. The Revenue has not raised any doubt over the quantification of expenditure while disallowing the same. We find merits in the contentions of the assessee. Accordingly, ground No. 3 of the appeal is allowed.
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