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2015 (7) TMI 395 - ITAT DELHI

2015 (7) TMI 395 - ITAT DELHI - TMI - Treatment of rental income "Income from house property" OR "Business income" - Held that:- The assessee was the absolute owner of the property and, therefore, the rent realized from the exploitation of property rights was taxable under the head income from house property. We find ourselves in agreement with ld. CIT(A) that in view of various decisions noted by him in his order, this issue is no more res integra. As far as the decision of Hon'ble Supreme cour .....

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tion the company did not show any receipt from its manufacturing activity. Therefore, it is not clear as to how the assessee could ask for advance. The assessee did not file any confirmation letter from the party or its bank statement or income-tax return details, PAN etc. Ld. CIT(A) has observed that on perusal of the relevant alleged account of the said party, it was seen that the amounts had been received by the assessee throughout the year beginning from April 2000 up to February 2001. He ha .....

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as not proved by assessee by either producing the party or proving with sufficient evidence, then the same can be added u/s 68. The second contention advanced by ld. counsel is that since assessee had offered the amount in AY 2003-04, therefore, this should not be included in AY 2001-02. In this regard we find that the decision relied by ld. counsel were rendered in the context of accrual of income and the same have no application to the present case. We, therefore, confirm the finding of ld. CI .....

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achal Futuristic Communications Ltd., in the relevant assessment year, was engaged in the business of manufacturing of telecom equipments. It had filed its return of income declaring loss of ₹ 5,63,460/-. During the year under consideration the assessee company did not show any receipt from its manufacturing activities. The assessment was completed at a net loss of ₹ 1,16,08,586/-, inter alia, after making following additions/ disallowances: (i) Rental income of ₹ 16,33,125/- r .....

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use property" instead of assessing the same as Business income. 2. The Ld. CIT(A) erred in allowing the addition of ₹ 47,4591- by the Assessing Officer, as difference between the 'provisions for excise duty on finished goods and the actual amount paid. 3. The Ld. CIT(A) erred in allowing the disallowance of sales tax penalty of ₹ 1,6801- by the Assessing Officer. 4. That the Ld. CIT(A) erred in allowing the additions made by the Assessing Officer by invoking provisions of se .....

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cordingly, the same stands dismissed. 5. Brief facts apropos ground no. 1 are that assessee had earned rental income of ₹ 16,33,125/- and had returned the same as business income. The AO assessed the income under the head income from house property, inter alia, observing that it is the settled legal position that if any income is assessable under the specific head, then it is to be assessed under that head even though such income may also fall under the other head. 6. He pointed out that t .....

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- Scindia Potteries Vs. CIT (2002) 253 ITR 168 (Del.); - Shambhu Investments Pvt. Ltd. Vs. CIT (2003) 263 ITR 143 (SC); 7. Ld. counsel for the assessee referred to the decision of Hon'ble supreme court in the case of Sultan Brothers Pvt. Ltd. vs. CIT 51 ITR 353 and submitted that if the income is not assessable as business income then it should be assessed as income from other sources as the assessee had let out the building which was a commercial asset. 8. We have considered the rival submi .....

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ision is not applicable to the facts of the present case because in that case there was composite letting of building fitted with furniture and fixtures for the purpose of paying rent as a hotel. The facts in the present case are entirely different and, therefore, the decision in the case of Sultan Brothers Pvt. Ltd. (supra) is not applicable. In the result, this ground is dismissed. 9. Brief facts apropos ground no. 4 are that during the year under consideration. The assessee had claimed to hav .....

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did not produce any person on behalf of the said company nor filed any confirmation, he made addition of ₹ 20,61,090/-. 10. Ld. CIT(A) confirmed the action of AO, inter alia, observing that assessee had not made efforts to produce the party and had not even filed any confirmation letter from the party or its bank statement or income-tax assessment, detail of PAN etc. 11. Ld. counsel for the assessee submitted that assessee was a pager manufacturer and because of obsolescence of the said te .....

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erred to the notice forming part of the accounts for FY ending 31-3-2003, wherein auditors had observed that advance received from customers amounting to ₹ 1,28,50,131.94 had been written back. Thus, he submitted that in AY 2003-04 assessee had offered this amount for taxation. Details of the same are contained at page 51 of the PB. 13. Ld. counsel further submitted that there is loss in both the years i.e. 2001-02 and AY 2003-04, therefore, there was no impact on taxation and, therefore, .....

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