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ACIT, Circle-35, Kolkata Versus Smt. Madhu Devi Saraf

2017 (11) TMI 993 - ITAT KOLKATA

Disallowance u/s 14A r.w.r. 8D(2)(ii) - Held that:- As for the disallowance under Rule 8D(2)(iii), the assessee on her own had disallowed a sum of ₹ 5 lacs in the return of income out of total administrative expenses of ₹ 40,73,576/-. The Ld. AO had not recorded any satisfaction as to how the said disallowance made by the assessee is incorrect having regard to the accounts of the assessee in terms of Section 14A(2) of the Act read with Rule 8D(1) of the Rules. Accordingly, this Tribu .....

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ngs, there is no need to adjudicate the same again in the reassessment proceedings. Hence, the ground no. 1 raised by the Revenue is dismissed. - Addition made towards rental income in respect of five shops - determination of income - ownership of shops - assessee pleaded that she is not the owner of the property and hence there could not be any charge of rental income of notional basis under the head income from house property on her - Held that:- In the instant case, the assessee had used .....

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04.2018. We find similar provision was conspicuously absent previously under the Income Tax Act more particularly, under the head ‘profits and gains of business or profession’ for chargeability of notional income for five shops. Hence, we hold that the Ld. CIT(A) had rightly deleted the addition made towards rental income under the head income from house property in the instant case and accordingly, the ground no. 2 of the revenue is dismissed. - I.T.A No. 1325/Kol/2015 - Dated:- 15-11-2017 - Sh .....

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3(3) of the Income Tax Act, 1961 (in short the Act ) dated 06.02.2015 for the Assessment Year 2010-11. 2. The first issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in deleting the disallowance made u/s 14A of the Act read with Rule 8D(2)(ii) of the Act, in the facts and circumstances of the case. 3. The brief fact of this issue is that the assessee filed her return of income on 30.10.2010 declaring total income of ₹ 8,42,27,182/- for the assessment year 201 .....

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in the original return of income. In the original assessment, the Ld. AO observed that though the disallowance u/s 14A read with Rule 8D of the Rules works out to ₹ 75,60,839/-, since the assessee had debited total expenses in her profit and loss account only to the tune of ₹ 40,73,576/-, the disallowance u/s 14A of the Act was also restricted to ₹ 40,73,576/-. The Ld. AO later observed that the assessee had actually paid a sum of ₹ 1,39,77,495/- towards interest on loan .....

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that the appeal against the original assessment order u/s 143(3) of the Act dated 15.03.2013 was disposed off by the Ld. CIT(A)-XX vide order dated 09.09.2014, wherein, the assessee has only positive interest income (net of ₹ 4,50,84,575/-) and hence, there is no scope for disallowance of interest in terms of Rule 8D(2)(ii) of the Rules. In respect of disallowance to be made under Rule 8D(2)(iii), the Ld. CIT(A)-XX had observed that the total remaining expenses debited in the profit and lo .....

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predecessor and deleted the disallowance made u/s 14A read with Rule 8D(2)(ii) of the Rules to the tune of ₹ 49,31,531/-. Aggrieved the Revenue is in appeal before us on the following ground: 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made u/s 14A read with Rule 8D(ii) without considering that computation of disallowance under Rule 8D(ii) is based on total interest paid and not on the netting of interest income. 5. We have heard .....

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there is no need to make any disallowance under rule 8D(2)(ii) of the Rules. This Tribunal also held with regard to the disallowance under Rule 8D(2)(iii), the assessee on her own had disallowed a sum of ₹ 5 lacs in the return of income out of total administrative expenses of ₹ 40,73,576/-. The Ld. AO had not recorded any satisfaction as to how the said disallowance made by the assessee is incorrect having regard to the accounts of the assessee in terms of Section 14A(2) of the Act .....

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014 dated 16.08.2017 in assessee s case for the assessment year 2010-11 in original assessment proceedings, there is no need to adjudicate the same again in the reassessment proceedings. Hence, the ground no. 1 raised by the Revenue is dismissed. 6. The next ground to be decided in this appeal is as to whether the Ld. CIT(A) was justified in deleting the addition made towards rental income in the sum of ₹ 8,40,000/- in respect of five shops, in the facts and circumstances of the case. 7. T .....

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um of ₹ 3,77,576/- as premium to M/s Happy Homes & Hotels Pvt. Ltd. for the above five shops. M/s Calcutta Municipal Corporation, being licensor of Satyanarayan Park, AC Market, is the owner of the shops being constructed and developed by licensee M/s Happy Homes & Hotel Pvt. Ltd.. Ignoring the aforesaid facts, the ld. AO in the reassessment proceedings observed, that the assessee is the owner of five shops at Satyanarayan Park, AC market and since there was no rental income offere .....

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ss rental income, the Ld. AO granted standard deduction @ 30% towards repairs and determined the net rental income of ₹ 8,40,000/- under the head income from house property and completed the reassessment. 8. Before the Ld. CIT(A), the assessee pleaded that she is not the owner of the property and hence there could not be any charge of rental income of notional basis under the head income from house property on her. She also placed reliance on the decision of Hon ble Supreme Court in the ca .....

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is noted from Deed of Sub-License made on 25.08.1995 that the appellant is sub- licensee of the shops and M/s Happy Home & Hotel Pvt. Ltd. is License and the Calcutta Municipal Corporation is Licensor of the Satyanarayan Park, A. C. Market. Accordingly, it is quite clear that the appellant is not the owner of the shops. In terms of provision of Section 22 of I.T. Act, 1961 the annual value of property consisting of any building or lands appurtenant thereto of which the assessee is the owner, .....

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dition is directed to be deleted. 9. Aggrieved, the Revenue is in appeal before us on the following ground: 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in considering that the assessee is not the owner of the shops and deleting the addition on rental income which is supported by Ld. CIT(A) s order dated 12.06.2015 for the A.Y. 2011-12 on the same issue and on the findings made by the AO on the basis of Departmental Inspector. Ld. CIT(A) has also erred by not co .....

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