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Texaco Overseas Pvt. Ltd. Versus Asst. Commissioner of Income Tax

2016 (1) TMI 314 - ITAT DELHI

Addition under the head income from house property - whether the rental income declared by the assessee is composite income including charges for these services also and hence the expenses incurred on these additional services has to be reduced form such composite rental income to arrive at the annual value.Held that:- As decided in assessee's own case for A.Y 2006-07 [2010 (4) TMI 1066 - ITAT DELHI] for the purpose of computing income from house property, rental income in connection with user o .....

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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) TMI 1066 - ITAT DELHI] find that these expenses incurred by the assessee are such which are necessar .....

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has not earned any income during the relevant period, hence, no disallowance can be made u/s 14A of the Act. See CIT vs. Holcin [2014 (9) TMI 434 - DELHI HIGH COURT] - Decided in favour of the assessee - ITA No. 5007/DEL/2014 - Dated:- 4-12-2015 - C. M. Garg, JM And L. P. Sahu, AM For the Appellant : Shri Mukesh Gupta, Adv For the Respondent : Shri R C Danday, Sr. DR ORDER Per C M Garg, JM This appeal by the assessee has been directed against the order of the Ld. CIT(A)-19, New Delhi dated 11/8/ .....

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ew 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 Commission .....

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n/disallowance were bad is law. 5. Whether on the facts and in the circumstances of the case the Ld. Commissioner of Income-Tax (A), Ne1w Delhi has grossly erred in law and on I facts in making an addition of ₹ 12,58,665/- u/s 14A of the Act due to any one of the following reasons:- (a) by without issuing an show cause notice for enhancing the income u/s 251 (2) of the Act by ₹ 12,58,659. (b) by ignoring the fact that addition u/s 14A of the Act was unwarranted as the addition u/s 14 .....

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4,153/- under head of income from house property by ignoring vital facts and evidence of the assessee. 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 .....

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below. However, the Ld. DR fairly accepted that the assessee was granted relief by the said order of the Tribunal for A.Y 2006-07(supra). 5. On careful consideration of above, at the outset, we note that the Tribunal in the similar facts on the similar issue held in favour of the assessee. The relevant operative part of this order reads as follows:- "4. We have considered the rival submissions and have gone through the orders of the authorities below. We find that it was submitted before t .....

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arrive at the annual value. The CIT(A) has followed a decision of the Tribunal rendered in the case of J.B. Patel & Co. vs. DCIT as reported in 312 (AT) 171 (Ahm.). In that case also composite income was received by the assessee and it was held by the Tribunal that the annual value of the house property should be assumed at the reduced value i.e. after reducing expenses incurred in providing extra services from rental income. In the present case also, the facts are similar. It is claimed by .....

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e from house property, rental income in connection with user of house property only is assessable and when charges for other services stand included in such rental income, such additional charges should be reduced from rental income if the quantification of the same is available. In the present case, quantification of charges for additional services is not readily available and hence we do not find any reason to interfere in the order of the CIT(A) on this issue as per which it was held by him t .....

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nd that CIT(A) has directed the AO to reduce such expenses for arriving at annual value and deduction @ 30% allowable u/s 24 is allowable to the extent of 30% of annual value only and hence this submission of the Ld. DR of the Revenue is already complied with by the assessee as well as by the CIT(A)." 6. In view of above, on specific query from the Bench, the Ld. DR replied that to the best of his knowledge, the order of the Tribunal (supra) has not been modified or set aside, hence, we hol .....

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roperty 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 2006-07(supra). The Ld. DR strongly supported the action of the authorities below and contended that if the assessee is not carrying any .....

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nd objection i.e. allowing of set off of loss of ₹ 33559/-, we find that it is noted by the CIT(A) in para 10 of his order that under ten different heads, expenses are incurred by the assessee which includes ₹ 15,000/- on account of audit fees, ₹ 5533/- on account of bank charges, ₹ 5877/- on account of fees and subscription, Rs.l129/- on account of preliminary expenses written off and Rs.l102/- on account of legal and professional fees. There are some petty expenses also .....

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diture 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 resultin .....

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