TMI Blog2017 (1) TMI 1755X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act by fixed percentage 0.5%. Whereas, the Ld. CIT(A) considered these facts and Directed the Assessing Officer to re-calculate based on the provisions of section 14A r.w.r. 8D as they are mandatorily applicable. Therefore, we are not in inclined to interfere with the order of the CIT(A) and upheld the same and allow the ground of the assessee for statistical purpose - I.T.A. No. 2917/Mds/2016 - - - Dated:- 16-1-2017 - Shri Abraham P. George, Accountant Member And Shri G. Pavan Kumar, Judicial Member For the Appellant : Shri A.S. Sriraman, Advocate. For the Respondent : Shri A.V. Sreekanth, JCIT. ORDER Per G. Pavan Kumar, Judicial Member: The assessee has filed an appeal against the order of the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o month basis. The Ld. AR of the assessee relied on the assessee's own case of jurisdictional High Court for the assessment year 2001-02, and as per the object clause of memorandum of association the assessee company earned income under the business income and the Ld. AO relied on Madras High Court decision in the case of Chennai Properties and Invesment Ltd., 265 ITR 685 (Mds). Where the assessee has engaged in property business but realised income by letting out buildings and shall be treated as income from house property . Further, the Ld. AO found the income from Hire charges pertains to letting out of scaffolding materials. The activities of the assessee are in a systematic manner and falls out of purview of Business income and fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer to recompute the Disallowance u/s. 14A r.w.r. 8D and partly allowed the appeal. 4. Aggrieved by the order, assessee filed an appeal before the Tribunal. The Ld. AR argued the grounds and reiterated the findings and submissions made in the assessment proceedings and the appellate proceedings and relied on the assessee's own case for the assessment year 2010-11 of co-ordinate bench decision in ITA No. 402/Mds/2013 others dated 01.06.2016 where these facts were considered exhaustively and decided the apportionment of rental income and prayed for allowing the appeal. Contra, the Ld. DR relied on the orders of the lower authorities. 5. We heard the rival submissions, perused the material on record and judicial decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operties and Investments Ltd. (supra), part of the rental income received by the assessee for providing services has to be classified as income from business. Since the assessee itself claims 75% of rental income has to be classified as income from house property, the CIT(Appeals) has rightly found that 75% of the rental income for assessment year 2003-04 as income from house property. Therefore, this Tribunal is of the considered opinion that the IT(Appeals) has rightly found that 75% of the rental income has to be assessed as income from house property and the balance 25% as income from business. By respectfully following the law laid down by the Apex Court in Chennai Properties and Investments Ltd. (supra), we hold that the rental income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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