TMI Blog2018 (11) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... as right in assessing amenity charges under the head, ‘Income from other sources’. CIT(A) was right in confirming the action of the AO in assessing amenity charges under the head ‘Income from other sources’. Disallowance of total expenses claimed under the head, ‘Administrative & other expenses’ - Held that:- In this year, the AO has disallowed similar expenses without there being any change in facts. The assessee ought to incur expenses even though there is no business activity to maintain corporate status of the assessee like audit fees, postage expenses, telephone charges and other day today expenses. Since the expenditure incurred by the assessee are in the nature of general administrative expenses, which are required to be incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, prays that the reopening of assessment u/s. 147 of the Act be held to be ab-initio and/or otherwise void and bad in law. GROUND 11 : 1. The CIT (A) erred in confirming the action of the AO of treating income received in respect of the Amenities Agreement with the lessee of the premises under the head 'Income from Other Sources' instead of 'Income from House Property', as claimed by the Appellant. He failed to appreciate and ought to have held that such income received under the Amenities Agreement was assessable under the head 'Income from House Property' only, along with the rental income received under the Lease Agreement with the lessee for the same premises. The Appellant theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in the business of running cinema theatres, filed its return of income for AY 2008-09 on 01-09-2008 declaring total income of ₹ 5,67,38,760. The return was processed u/s 143(1) of the I.T. ACT, 1961. Thereafter, the assessment has been reopened u/s 147 for the reasons recorded, as per which, income chargeable to tax to the extent of ₹ 1.91 crores have escapsed income within the meaning of section 147 of the I.T. Act, 1961. In response to the notice, the assessee, vide its letter dated 13-04-2015 stated that the original return filed u/s 139 shall be treated as return filed in response to notice u/s 148 of the I.T. Act, 1961. Thereafter, the case has been selected for scrutiny and accordingly, notices u/s 143(2) and 142(1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been assessed under the head Income from house property and Income from other sources . 3. Aggrieved by the assessment order, assessee preferred appeal before CIT(A). The CIT(A), by following his predecessor s order for earlier assessment year, which was supported by the order of ITAT in assessee s own case, upheld the addition made by the AO towards re-working of amenity charges received, under the head Income from other sources . Aggrieved by the order of Ld.CIT(A), assessee is in appeal before us. 4. At the time of hearing, the Ld.AR for the assessee submitted that he does not want to press ground No.1 challenging reopening of the assessment u/s 147 of the I.T. Act, 1961 and hence, ground 1 is dismissed, as not press ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of the Id. Counsel. The amenity charges have been received by the assessee as per the agreement and the same has to be taxed under the head Income from other sources' as held hereinabove. The alternate claim of the assessee is accordingly dismissed. 6. In this view of the matter and consistent with the view taken by the coordinate bench, we have to hold that the Ld.CIT(A) was right in confirming the action of the AO in assessing amenity charges under the head Income from other sources . Hence, we are inclined to uphold the findings of Ld.CIT(A) and reject ground taken by the assessee. 7. The next issue that came up for our consideration from ground 4 is disallowance of total expenses claimed under the head, Administrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce has been made for AY 2007-08. We find that the assessee has claimed total expenditure of ₹ 5,72,472 under the head administrative expenses including legal and professional fees and depreciation on assets. On perusal of details of expenses claimed in the P L account, we find that these expenses are routine nominal expenses incurred to maintain corporate status of the assessee. We further observe that though the AO has taken support from the order for AY 2007-08, on perusal of the assessment order passed by the AO for AY 2007-08, we find that the AO has allowed administrative other expenses including legal and professional fees for AY 2007-08. In this year, the AO has disallowed similar expenses without there being any change in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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