Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Atur India Private Limited Versus ACIT, Circle 6 (1) , Mumbai

2016 (9) TMI 698 - ITAT MUMBAI

Disallowance made u/s. 14A - Held that:- 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. (2014 (8) TMI 119 - BOMBAY HIGH COURT ). Accordingly, we set aside the order of learned CIT(A) passed on this issue and direct the Assessing Officer to delete the disallowance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the case of the AO that the assessee has let out this property during this year itself, after it was vacated by M/s Athma Productions P Ltd. The assessee has stated that the property was only let out in June 2009 and the same has not been proved to be wrong. - In view of the above, we are unable to agree with the view expressed by Ld CIT(A) on this issue. Accordingly we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the assessment made on notional basis. - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is common order, for the sake of convenience. 3. The assessee is carrying business of 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 submi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is called for. In this connection, he also drew our attention to the copies of the balancesheets of the three years under consideration. 5. We have heard learned Departmental Representative and perused the record. We find merit in the contentions of the assessee. For the sake of convenience, we extract below details of own funds and investments available with the assessee in each of the three years as culled out from the Balance Sheet filed by the assessee. Rs. in lakhs Assessment year Own funds .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce 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 let out a property and collected rent by way of two components, viz., Rent and Service charges. The assessee offered both the receipts as income under the head Income from House Property. However, the AO assessed the services charges as income under the head income from other sour .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ces described above are of routine nature, which is closely connected to renting of property. Accordingly he contended that the Ld CIT(A) was not justified in confirming the order passed by the AO on this issue. 8. On the contrary, the Ld D.R submitted that the assessee has collected separately the service charges and hence it is not related to the renting of premises. Accordingly he submitted that the AO has rightly assessed the same as income from other sources. 9. We heard the parties on this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t 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 service charges also as part of rental in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncome of the assessee. Before the Ld CIT(A), the assessee explained that assessee has terminated the lease with M/s Athma Productions P Ltd on 29-07-2008 and the said party has also vacated the premises in July 2008 itself. The assessee furnished a copy of letter dated 08-09-2008 written by it to M/s Athma Productions P Ltd acknowledging peaceful possession of the property. The assessee submitted that the very same premise was let out to M/s Meridhun Entertainment P Ltd under an agreement dated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessed 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 provisi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version