TMI Blog2012 (7) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... for acquiring, constructing or renovating the property and other than this, no other deduction is allowed - rightly denial of deduction claim of assessee - against assessee. Disallowance of Generator Running Expenses - no evidence was produced by the appellant for expenses having incurred genuinely for the diesel expenditure - Held that:- Considering submissions made by assessee that Diesel Generator was for the warehouse of appellant, that all bills were produced before the AO and (DR) relied upon the orders of the lower authorities - from the details filed by the assessee and admitted that payments were made in violation of Sec. 40A(3) for purchasing diesel disallowance is restricted to Rs. 1,51,315/- out of the disallowance upheld by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant had produced all the bills of the third parties for the purchase of diesel before the assessing officer during the course of assessment proceedings . 2. Facts of the case: Under the sub-head Society Charges and ALV, Assessing Officer (AO) has discussed the issue with regard to Ground of Appeal No.1 as under: The assessee has debited an amount of Rs. 1,01,717/- as Society Charges in respect of the Mehta Mahal Property under the head Repairs Maintenance . The assessee was asked to explain how an amount which has no connection whatsoever with the business of the assessee can be allowed as a deduction. The assessee stated that this amount was spent as housing society charges in respect of property rented out. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase as it was decided in connection with whether housing society charges could be allowed as deduction under house property income . In the case of the assessee this amount is being claimed as deduction from profit of his business which cannot be allowed under I.T. Act. Further, the rental agreement of the assessee with a tenant nowhere mentions that it is the responsibility of the assessee to pay housing society expenses. Thus, the amount of Rs. 1,01,717/- is disallowed. In the above submissions, the AR of the appellant has more or less reiterated what has been stated before the AO but there is no dispute regarding the fact that claim is not admissible a deduction either under the head income from house property or under the head business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at assessee s appeal should be rejected. The matter of Rare Rose (supra) was decided by the Tribunal as under: We first take-up the assessee s appeal being ITA No. 2575/Mum/2009. The first issue is in respect of disallowance of society charges of Rs. 1,95,038/-. We have heard the parties. The assessee-company is the owner of the commercial office premises which is let out and assessee receives the rental income. The assessee has reduced the society charges of Rs. 1,95,308/- for the purpose of arriving at the net annual value (ALV) of the property. The assessee contended before the AO that the property tax and society charges are direct charages to be deducted from gross rent and those expenses are in the nature of earning the income. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction to the assessee. We find no reason to interfere with the order of the Ld. CIT(A). accordingly, ground No.1 is dismissed. In light of the above discussion, Ground of Appeal No.1 is decided against the assesse. 6. Ground of Appeal No.2 has been discussed and decided by the CIT(A) as under: I have carefully considered the facts and submissions and also perused the order of the AO. I find that the AO has discussed this issue in para 4.2 by stating that the assessee has claimed diesel expenses of Rs. 8,29,081/- against the diesel expenses of Rs. 33,000/- in the preceding assessment year. The assessee was asked to explain the abnormal increase in consumption of diesel during the year under consideration to which the assessee claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring these last three months. No generator except replacing the old generator was purchased by the appellant. No other evidences could be produced for the diesel expenditure claimed for the last 3 months. In the absence of any rebuttal from the appellant, against these observations of the AO and also in the absence of any evidences whatsoever of the expenses having incurred genuinely and also on admission on the part of the appellant during the appellate proceedings that thee is no written agreement with the said party for bearing the expenses on account of diesel and power etc by the appellant, he disallowance made by the AO is thus justified. Therefore, the action of the AO is upheld. This ground is also decided against the appellant . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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