9911796707
TMI Blog2018 (4) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Asst. Commissioner of Income Tax, Addl. Commissioner of Income Tax & Dy. Commissioner of Income Tax, Circle-7(1), Mumbai (in short 'ACIT') for the A.Y. 2006-07, 2007-08, 2009-10 vide order dated 22-12-2008, 30-10-2009, 29-12-2011 under section 143(3) of the Income Tax Act, 1961(hereinafter 'the Act'). 2. The first common issue in these three appeals of assessee is against the order of CIT(A) confirming the action of the AO in treating the rental income as income from house property instead of business income. Consequently, the CIT(A) erred in disallowing the depreciation, maintenance expenses and also salary, wages and bonus, travelling and office expenses. The issue is exactly identical in all the three years and facts and circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies of Tribunal's order for AY 2005-06 in ITA No. 239/Mum/2009 order dated 19.01.2011, whereby the Tribunal has rejected the contention of the assessee and confirmed the action of the lower authorities treating the income as rental income by observing in para 8 as under: - "8. We have considered the issue. It is a fact that the assessee has surplus space in the building and apartments, which were leased out to various concerns and some of the agreements are placed on record. As seen from the leave and licence agreements placed on record the assessee as owner and is in possession of the premises on 5th floor of the building known as Kakad Chamber in World Division has leased out the property. Likewise the residential flat in Navi Mumbai wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome from house property, this being a consequential issue, the same is dismissed. 7. As regards to the disallowance of maintenance expenses of Rs. 3,22,293/-, the learned Counsel for the assessee only stated that the AO has disallowed the expenses of Rs. 3,22,293/- because the assessee's income is assessed as income from house property. 8. We find that this issue has not been adjudicated by CIT(A) despite specific ground raised before him. However, this issue needs to go back to AO for the simple reason that it is to be verified whether these expenses are claimed by assessee net of the rental receipts or these are inclusive in the gross receipts. In case these are inclusive of gross receipts, the AO has to take ALV of the property excludi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he closing stock. The CIT(A) confirmed the action of the Assessing Officer. 11. At the outset, the learned Counsel for the assessee filed copy of the judgment of Hon'ble Bombay High Court in the case of CIT vs Diamond Dye Chem Ltd. in Income Tax Appeal No. 146 of 2015 dated 07-07-2017, whereby the Hon'ble Bombay High Court has followed the Hon'ble Supreme Court decision in the case of CIT vs. Nippon Chemicals Co. Ltd 261 ITR 275 and held that the amount of Modvat credit was irreversible credit offered to manufacturers upon purchase of duty paid raw materials and that would not amount to income. Hon'ble High Court observed in Para 5 and 6 as under : - "5. We have considered the submissions. It is not disputed that the assessee was liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g identical in all the years i.e. for AY 2006-07 and 2007-08 & 2009-10. For this assessee has raised following ground No 3:- "3. The Commissioner of Income Tax (Appeal) erred in confirming the addition of Rs. 14,14,819/- as unexplained credit entry ujs+/-68 of the Income Tax Act." 14. Briefly stated facts are that the assessee has trading relation with one Shri Shriram Rayons, from whom assessee is making sales and purchases. As per the assessee's claim that it has received an amount of Rs. 14,14,819/- on 15.12.2004. The AO verified this amount from the ledger copies submitted by M/s Shriram Rayons under section 133(6) of the Act to the Assessing Officer. There was difference in the opening and closing balance as per the ledger account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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