TMI Blog2015 (10) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... tive expenditure after allocating on the basis of the receipts of the house property from the total receipts. This was a very reasonable basis for allocating administrative expenditure and once the income has been assessed as income from house property, then whatever administrative expenditure is pertaining to income from house property gets disallowed. There is no mistake apparent from record insofar as the direction of disallowance of administrative expenditures are concerned because what is disallowable is only 16% of the administrative expenses. As regards the second plea of depreciation that, at least it should have been allowed on the portion of the property used by the assessee for its office use, we find that no such ground has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses should be allowed. The applicant with due respect to the Hon'ble Bench submits that besides earning business income, the applicant is carrying on leasing business namely, leasing of equipments/vehicles. A portion of the property was used by the applicant for its office use and the said fact was mentioned before the CIT (Appeals) and the CIT (Appeals) has confirmed the same in para 4.2 of his order. The Hon'ble Bench has not considered the said issue while allowing the department's appeal with regard to depreciation. The Applicant further submits that the direction given by your honour for disallowance of administrative expenses is not correct since there is no such ground in the appeal filed by the department 3. Before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty is to be assessed as business income . In the ground of appeal, the Revenue has not raised the issue of administrative expenses before the Tribunal. The Tribunal, while deciding this issue, held that leasing income from the property i.e., rental income should be taxed as income from house property following the Tribunal order in Rolta Properties Pvt. Ltd., ITA no.4260-4270/Mum./2007, order dated 4th March 2009. Thereafter, the Tribunal further observed that no deduction for depreciation allowance or other administrative expenditure should be allowed. On this direction of the Tribunal, he submitted that first of all, no ground on administrative expenditure was taken by the Revenue and secondly, depreciation allowance also included dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice in the said premise. In this case, the main issue involved was, whether the income from business centre should be treated as business income or income from house property . The Assessing Officer held that the rent received from leasing of the property for business centre has to be treated as income from house property and only deduction permissible under section 24(a) should be allowed. He has rejected the assessee s plea with regard to the depreciation on office premise given on rent, furniture and fixture and air-condition installed in the building given on rent on the ground that the deduction for repairs is already allowed against income from house property and, therefore, depreciation cannot be allowed again as business expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stake apparent from record insofar as the direction of disallowance of administrative expenditures are concerned because what is disallowable is only 16% of the administrative expenses. As regards the second plea of depreciation that, at least it should have been allowed on the portion of the property used by the assessee for its office use, we find that no such ground has been raised by the assessee nor any specific plea was made. Besides this, the Tribunal has directed to disallow the deprecation, which was a logical corollary when the leasing income has been held to be assessed under the head income from house property . Thus, there is no mistake apparent from record which can be said to be rectifiable within the ambit of section 254(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
