TMI Blog2014 (2) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... hange in the consistent view adopted by the tribunal – Relying upon Sultan Brothers (P.) Ltd. vs. CIT [1963 (12) TMI 4 - SUPREME Court] - the assessment of the gross receipt as business income is directed. Re-computation of the disallowance u/s.14A of the Act – Held that:- The decision in Godrej & Boyce Mfg. Co. Ltd. v. Dy. CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] followed - a statutory disallowance is warrented, which had to be made toward both direct and indirect expenditure, observing the assessee to have incurred administrative expenditure and financial charges - there is no cause for any grievance to either side - The A.O. has to be satisfied with the assessee's claim u/s.14A, and compute the disallowance in a reasonable manner bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2004-05 (in ITA No.2247/Mum/2008 dated 08.08.2012), taking us through the relevant part of the tribunal's order for A.Y. 2001-02, being the lead order. On being questioned as to how the assessee claims an identity of facts with the preceding years, for the said decisions to be applicable, he would take us to para 4 of the assessment order as well as paras 4 4.1 of the impugned order, which clarify and state of there being no material change in the situation for the current year. Further, on being pointed out that the gross receipt as per the assessment order (Rs.11.89 crores) is at variance with the amount in dispute as projected by the assessee's ground no.1, it was submitted by the counsel that the ld. CIT(A) had allowed part relief t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parable from the letting of the building. This is, as explained by the apex court in Sultan Bros. (P.) Ltd. (supra), for the reason that it then becomes a new kind of income, not covered u/s. 9 (of the 1922 Act, corresponding to s. 22 of the 1961 Act). That is, income, not from the ownership of the building alone, but an income which though arising from building, would not have arisen if the plant, machinery, or furniture had not been let along with it. It further goes on to explain the concept of 'inseparable letting' as not one where the two, i.e., the building and plant, machinery or furniture, are inseparably connected when let out, but that the letting of one is inseparable from that of the other. That is, the inseparability referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ground nos. 2 3, which were not specifically argued before us, we find as not arising out of the impugned order. The same agitate the non-allowance of operating expenses (Rs.4,89,82,387/-) and depreciation on building (Rs.1,18,48,523/-) claimed by the assessee as business expenditure/deduction in computing the business income. There is no discussion qua the same in the assessment order; the assessing authority ignoring the same in view of the income being assessed as income from house property. The same thus arise as a direct fall out of the adjudication of the assessee's ground no.1, and are thus maintainable before us. On merits, the matter would require being restored back to the file of the A.O. for verification of the assessee's cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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