9911796707
TMI Blog2016 (9) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... construction of building, dams, power house etc. The common issue urged in these appeals relates to disallowance made u/s. 14A of the Act in all the three years. 4. Learned counsel appearing for the assessee submitted that the Assessing Officer has made disallowance u/s 14A r.w.r. 8D(2)(ii) relating to indirect interest expenses and also u/r. 8D(2)(iii) relating to administrative expenses. Learned counsel submitted that the assessee does not have grievance with regard to disallowance made u/r. 8D (2)(iii) of the I.T. Rules. With regard disallowance of indirect interest expenditure made u/r. 8D(2)(ii) of the I.T. Rules, the Learned AR submitted that the interest free funds available with the assessee are in far in excess of investments mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year Own funds Investment 2008-09 (31.3.08) 1577 547 2009-10 1667 516 2010-11 1750 390 It can be noticed that own funds available with the assessee in each of the three years is more than investment made and hence disallowance u/r. 8D(2)(ii) of the I.T. Rules is not called for in view of the decision rendered by Hon'ble Bombay High Court in the case of HDFC Bank Ltd. (supra). Accordingly, we set aside the order of learned CIT(A) passed on this issue and direct the Assessing Officer to delete the disallowance made u/r. 8D(2)(ii) of the I.T. Rules. 6. The next common ground urged in AY 2009-10 and 2010-11 relates to the assessment of Service charges received from the tenants as Income from other sources. The assessee has l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roundings and precincts, providing of car parking, maintaining electricity and water supply lines are, in our view, connected with normal renting of properties and hence they cannot be considered to be specialized services necessitating the assessment of charges, if any, collected for that purpose as income under the head Income from other sources. Though the assessee has split the rental receipts into rent and service charges, we are of the view that the same may be ignored in the facts and circumstances available in instant case, since the service charges are not related to any kind of specialized services. Accordingly, we set aside the order passed by Ld CIT(A) on this issue in both the years cited above and direct the AO to treat the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d vacant should also be assessed on notional basis. Accordingly he upheld the order passed by the AO. 12. The Ld A.R submitted that the provisions of sec. 23(1)(c) shall apply to the premises let out to M/s Athma Productions Private Limited, since the vacancy has arisen in a let out property. He submitted that as per the provisions of sec. 23(1)(c) of the Act, the actual rent received should be taken as Annual letting value. Accordingly he submitted that the view taken by Ld CIT(A) was not in accordance with the provisions of the Act. 13. On the contrary, the Ld D.R supported the order passed by Ld CIT(A) on this issue. 14. We have heard rival contentions and perused the record. The income under the head "Income from house property" is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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