TMI Blog2015 (6) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, we direct the Assessing Officer to make a disallowance of 2% of interest free income earned by the assessee during the relevant period.- Decided partly in favour of assessee. Rejection of set off of short term capital loss against short term capital gains - Held that:- The assessee had debited the short term capital loss in Profit & Loss account instead of treating it under the head “capital gains”. After the assessee realized her mistake, she filed a revised computation before the Assessing Officer at the time of scrutiny assessment. The Assessing Officer refused to accept the claim of the assessee. The Hon'ble Supreme Court of India in the case of Goetze (India) Ltd. (2006 (3) TMI 75 - SUPREME Court ) has held that powers of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmine whether the rental income is assessable as “business income” or “income from house property”. - Decided in favour of assessee for statistical purposes. - ITA No.2281/Mds/2014 - - - Dated:- 27-3-2015 - Shri A. Mohan Alankamony Shri Vikas Awasthy JJ. For the Appellant : Shri K.M. Mohandass, CA For the Respondent : Shri S. Das Gupta, JCIT ORDER Per Vikas Awasthy, JUDICIAL MEMBER: The appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-VII, Chennai, dated 23.05.2014 for the assessment year 2007-08. The assessee has assailed the findings of the CIT(Appeals) primarily on following three grounds:- (1) Disallowance u/s 14A read with Rule 8D (2) Rejection of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to take cognizance of the same on the ground that revised computation has been filed, without filing revised return of income. The assessee in the return of income admitted rental income from commercial property under the head income from house property . The A.O. held that the assessee in earlier assessment years has claimed the income from letting out of the property as business income. The assessee cannot arbitrarily change the head of the income. The Assessing Officer treated the rental income from property under the head business income . 4. Aggrieved by the assessment order dated 24.12.2009, the assessee preferred an appeal before the CIT(Appeals). The CIT(Appeals) upheld the findings of the Assessing Officer and rejected the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the assessee has been offering rental income under the head income from business . In view of the judgment of the Hon'ble Supreme Court of India in the case of CIT v. Shambhu Investments (263 ITR 143) and the judgment of Hon'ble jurisdictional High Court in the case of Keyaram Hotels Pvt. Ltd. v. DCIT 2014 (11) TMI 633, the assessee changed the head of income and returned the rental income under the head income from house property . The Ld. A.R. prayed for setting aside the impugned order. 6. On the other hand, Shri S. Das Gupta, JCIT, representing the Revenue, strongly defended the order of the CIT(Appeals). The Ld. D.R. contended that the assessee cannot raise fresh claim by filing a revised computation before the A.O. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of 2% of interest free income earned by the assessee during the relevant period. This ground of appeal of the assessee is thus partly allowed. 8. The next issue in the appeal is with regard to set off of short term capital loss against short term capital gains. It is an undisputed fact that the assessee had debited the short term capital loss in Profit Loss account instead of treating it under the head capital gains . After the assessee realized her mistake, she filed a revised computation before the Assessing Officer at the time of scrutiny assessment. The Assessing Officer refused to accept the claim of the assessee. The Hon'ble Supreme Court of India in the case of Goetze (India) Ltd. (supra) has held that powers of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
