TMI Blog2016 (6) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose. The AO is directed to first identify the properties let out fully or partly and, then, disallow the repairs and maintenance expenses relatable to such let out properties. Needless to say, the assessee will be allowed a reasonable opportunity of being heard. Addition of Administrative expenses - AO observed that the business income of the assessee from ‘Fun and fair game’ - HELD THAT:- AO has made an ad hoc 25% disallowance of expenses by observing that the revenue from the business was much less than the expenses incurred. Apart from that, he has not disputed the factum of the assessee having actually incurred these expenses for the purpose of its business. Simply because the business receipts are less, cannot be a reason to dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at ₹ 2,75,844/- 3. Briefly stated, the facts of the case are that the assessee claimed deduction for various expenses amounting to ₹ 36,97,995/-. These expenses included Repairs and maintenance (office and others) at ₹ 5,62,797/-. The AO observed that the assessee had claimed 30% deduction on account of Income from house property and, hence, repairs and maintenance expenses were not allowable. He, therefore, made addition of ₹ 5,62,797/-. The ld. CIT(A) noticed the details of repairs and maintenance expenses amounting to ₹ 5,62,797/- which have been reproduced on page 3 of the impugned order. A chart has been drawn on page 7 of the ld. CIT(A) s order in which repairs and maintenance expenses have been segr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of expenses incurred in respect of the properties let out are not specifically available, I consider it expedient to set aside the impugned order and restore the matter to the file of AO for restricting the deduction qua the properties used for the business purpose. The AO is directed to first identify the properties let out fully or partly and, then, disallow the repairs and maintenance expenses relatable to such let out properties. Needless to say, the assessee will be allowed a reasonable opportunity of being heard. 5. Ground No.2 is against the sustenance of disallowance at ₹ 6,17,549/- out of Administrative expenses. The assessee claimed administrative expenses comprising of Advertisement expenses, Legal professional, Print ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on Plant and machinery, Vehicles, Games and toy maintenance and Computers etc. Since the assessee was carrying on the business of Game and toy machines, the AO allowed depreciation on Games and toy machine at ₹ 2,92,170/-. 50% of the remaining depreciation was disallowed. The ld. CIT(A) restricted the disallowance to 25%. The assessee is aggrieved against the sustenance of remaining amount of depreciation. 8. After considering the rival submissions and perusing the relevant material on record, it is noted from the impugned order that the assessee claimed depreciation under the `Building block in respect of three buildings, which were used for the business purpose. It shows that depreciation on the let out building(s) was not cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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