TMI Blog2014 (1) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... e space, but also by way of capital, financial and human, (even if by way of the same being available on tap) as we presume it to be engaged only in seeking a business opportunity to exploit its business potential - the same would be required to be established as a fact, and cannot be adopted as a ruse - The matter remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee. - I.T.A. No. 8056/Mum/2011 - - - Dated:- 5-6-2013 - Shri D. Manmohan, V. P. And Shri Sanjay Arora, A. M.,JJ. For the Appellant : Shri Hemant Jadia For the Respondent : Shri O. P. Singh ORDER Per Sanjay Arora, A. M.: This is an Appeal by the Assessee arising out of the Order by the Commissioner of Income Tax (Appeals)-14, Mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, debiting the entire expenditure on the maintenance of office, as well as the provision of services, which aggregated to Rs.5,90,782/-, claiming the same as a deductible business expenditure u/s.37(1) by way of office and administrative expenses. The Revenue, however, rejected the same, assessing the entire claimed business receipt of Rs.9.25 lakhs as 'income from house property', allowing statutory deduction of 30% there-against. That is, no separate claim for any expenditure, including qua depreciation on fixed assets, separately claimed at Rs.2,74,307/-, was allowed. 3. We have heard the parties, and perused the material on record. 3.1 Both the authorities below have comprehensively examined the issue, drawing from judicial precede ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l exploitation of the property, as where it is given to the tenant for running his business. The only exception is where the house property is used by the owner for the purposes of the business or profession carried on by him. As such, ownership by itself is a criterion for bringing the income to tax under the said head, so that even where the same is not actually let, income is computed on the basis of its rental value, i.e., the sum for which the property might reasonably be expected to be let from year to year. However, where the dominant object is letting of machinery or plant, and the letting of building is an inseparable part of such letting, as (say) in the case of a factory, the income would be chargeable either as 'business income' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly required, saving capital as well as rental cost. The arrangement has its limitations as well, as an office premises has necessarily to be a regular, constant place, making it incumbent to be taken per a regular arrangement, as by way of rent, which would also prove economical. The concept of business centre, therefore, is generally operational and workable for 'temporary' offices, as for conducting board or other business meetings at outside the regular place /time. In the present case, however, the entire income, as we observe, flows to the assessee from one party, M/s. Apna Loan.com Services Pvt. Ltd. It is, thus, a case of rent of office premises. That certain essential facilities, as furniture and fixture and house- keeping, are pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... house property'. The standard deduction u/s.24 would stand to be allowed on such income, i.e., net of the amount received toward provision of electricity. We decide accordingly. 3.3 The assessee also claims, per its ground no.2, for assessment of the interest income of Rs.10,387/- as 'business income', as against under the head 'income from other sources' assessed by the Revenue. The assessee, it is clear, is not engaged in any business activity. The interest under reference is from FDR/s placed with bank. Accordingly, we find no basis for the assessee's claim; the interest only flowing from funds deemed surplus for the time being, so that these stood parked in interest yielding saving instrument, and which is in fact illiquid. We decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business activity is being carried out, and which we have considered in a broad manner as including exploring an opportunity for the same. In this regard we may though clarify that the assessee would be required to exhibit the necessary wherewithal for carrying the business, not only in terms of office space, but also by way of capital, financial and human, (even if by way of the same being available on tap) as we presume it to be engaged only in seeking a business opportunity to exploit its business potential. That is, the same would be required to be established as a fact, and cannot be adopted as a ruse. The matter is accordingly remitted back to the file o the A.O. to allow the assessee an opportunity to present its case before him, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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