TMI Blog2016 (1) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... reduced from rental income if the quantification of the same is availablethe issue is covered in favour of the assessee in principle and thus we follow the same. However, some recalculation is required at the end of the A.O, therefore the A.O is directed to reduce the expenses incurred by the assessee for rendering additional services to the tenants for arriving at annual rental value and thereafter, on such annual rental value, deduction u/s 24 of the Act @ 30% is to be allowed. The issue is restored to the file of the A.O to recompute the income from house property on the same line as directed by the Tribunal order for A.Y 2006-07. Allowing of set off of loss - Held that:- As decided in assessee's own case for A.Y 2006-07 [2010 (4) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property by ignoring the various facts evidences etc on record. 2. Whether the Ld. Commissioner of Income Tax (A), New Delhi has further erred in law and on facts in enhancing the income from house property by further ₹ 7,88,684/- instead of deleting the addition made to the Returned income of ₹ 6,54,153/- by the Assessing Officer. 3. Whether on the facts and in the circumstances of the case, the Ld. Assessing Officer has grossly erred in law and on facts in disallowing the entire business loss as declared by the assessee amounting to ₹ 33,53,751/-. Whether on the facts the Ld. Ld Commissioner of Income fax (A), New Delhi has also erred in law in restricting tire business loss to ₹ 9,40,908/- instead ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. The Ld. Counsel further contended that the Ld. CIT(A) has also erred in enhancing the income from house property by ₹ 7,88,684 instead of deleting the said addition. The Ld. Counsel also placed copy of the order of ITAT H Bench, New Delhi dated 23/4/2010 passed in assessee s own case for A.Y 2006-07 in ITA No. 4050/Del/2009 and contended that in the earlier assessment year in the similar set of facts and circumstances and by following the dicta rendered by the Tribunal in the case of JB. Patel Co. vs. DCIT 312 (AT) 171 (Ahm) allowing the ground of the assessee, it was directed to the A.O to reduce such expenses incurred by the assessee for rendering additional services to the tenants for arriving at annual value and it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er reducing expenses incurred in providing extra services from rental income. In the present case also, the facts are similar. It is claimed by the assessee that the assessee is providing additional services such as lighting in common areas during working hours, pest control services periodically for all common areas, cleaning services for common areas and security services. The rental income declared by the assessee is composite rental income. The rental income declared by the assessee is composite rental income including charges on account of these additional services being rendered by the assessee. For the purpose of computing income from house property, rental income in connection with user of house property only is assessable and when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calculation is required at the end of the A.O, therefore the A.O is directed to reduce the expenses incurred by the assessee for rendering additional services to the tenants for arriving at annual rental value and thereafter, on such annual rental value, deduction u/s 24 of the Act @ 30% is to be allowed. The issue is restored to the file of the A.O to recompute the income from house property on the same line as directed by the Tribunal order for A.Y 2006-07 (supra). Accordingly, Ground No. 1 2 are allowed in the manner as indicated above. Ground No. 3 4 7. Apropos these ground, the Ld. Counsel of the assessee submitted that the issue is covered in favour of the assessee by the order of the Tribunal in assessee s own case for A.Y 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning registered office of a company to continue its existence and to comply with the statutory obligations are allowable as business expenditure even if assessee is not carrying out any business activities in the relevant year because these expenditure are incidental to the business activities of the assessee company. In the present case also, we find that these expenses incurred by the assessee are such which are necessary for the purpose of maintaining registered office of a company to continue its existence and also to comply with the statutory obligations and hence the same is allowable as business expenditure and the resulting loss from business is rightly claimed for set off against income from house property by the assessee and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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