Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 323 - AT - Income TaxAddition u/s 24(b) - Claim of expenditure to run the company from rental income - why expenditure may not be disallowed since there is no business activity? - HELD THAT:- A body corporate has to incur certain expenditure mandatory to maintain its corporate structure. A perusal of the expenses mentioned hereinabove clearly show that all the expenses have been incurred for maintaining corporate structure of the assessee. In our considered view, such expenditure has to be allowed while computing the income of the assessee. Our this view is fortified by the decision of the co-ordinate bench in the case of Mokul Finance Pvt Ltd [2007 (7) TMI 351 - ITAT DELHI-I] In the case in hand, the assessee has itself assessed rental income under the head “Income from house property’. Therefore, the decision relied upon by the Assessing Officer/DR would do no good to the revenue - we direct the Assessing Officer to delete the addition - Decided in favour of assessee.
|