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TMI Blog2016 (1) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... is general which does not require any adjudication. 3. Ground No.2 about the treatment of rental income by the Revenue as 'Income from other sources' instead of 'Income from house property' as claimed by the assessee, was not pressed by the learned AR. The same is, therefore, dismissed. 4. Ground No.3 is against computation of rental income at Rs. 1,84,34,516/- instead of Rs. 1,62,16,316/-. The facts of this ground are that the Assessing Officer, on perusal of lease agreement with M/s Fisherv India P. Ltd. to whom premises was let out, observed that there was a mention of rent of Rs. 1.84 crores. The Assessing Officer treated this amount of rent as 'income from other sources'. The assessee argued before the learned CIT(A) that rent for o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer. 7. Having heard the rival submissions and perused relevant material on record, we observe that the assessee claimed deduction of interest amounting to Rs. 86,828/- on over draft account stated to have been utilized for purchase of the furniture and fixtures and repairs and maintenance of the building which was let out on rent. The Learned AR submitted that the AO did not allow a reasonable opportunity to adduce necessary evidence and requested that one more opportunity be given to the assessee for filing necessary evidence in this regard. It is noticed that it is a case of payment of interest to bank and hence the genuineness of payment of such interest cannot be denied. The only thing which remains is to link such intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support of the payment of such Professional charges. Setting aside the impugned order on this score, we remit the issue to the Assessing Officer with a direction to allow adequate opportunity to the assessee for producing necessary evidence in support of this payment and then decide as per law. 10. The last ground is against confirmation of disallowance of a sum of Rs. 4,19,083/- on account of Processing of loan fees by treating it as capital expenditure. 11. The Assessing Officer treated processing of loan fees as a capital expenditure and disallowed the same. No relief was allowed in the first appeal. 12. After considering the rival submissions and perusing relevant material on record, we do not find any substance in the view canvasse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued before the authorities below that this rental income is inclusive of service tax amounting to Rs. 0.14 crore which should be deducted from the gross rental receipts. This contention met with the fate of dismissal. Now, the assessee is before us. 17. After hearing the rival submissions and perusing relevant material on record, we find that the assessee categorically claimed before the authorities that gross rent of Rs. 2.66 crore includes service tax of Rs. 0.14 crore and only the net amount should be charged to tax. The amount of service tax is undoubtedly a part of assessee's receipt and is chargeable to tax in the same way as receipt. However, the payment of service tax is deductible in the computation of income. The authorities b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges is similar to ground No.6 of the assessee's appeal for the assessment year 2007-08 decided in the foregoing paragraphs of this order. Following the same, we set aside the impugned order on this score and remit the matter to the Assessing Officer with a direction to allow adequate opportunity to the assessee for producing necessary evidence in support of this payment. 21. Ground No.7 is against confirmation of disallowance of Rs. 14,04,048/- on account of brokerage charges. The assessee claimed deduction for this amount as brokerage charges paid. In the absence of any details, the Assessing Officer made disallowance, which came to be upheld in the first appeal. 22. The Learned AR argued that such brokerage charges were paid to commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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