9911796707
TMI Blog2021 (10) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... ar under consideration was filed declaring a total income of Rs. 1,61,70,710/-. The case was selected for scrutiny under CASS. During the course of scrutiny assessment proceedings, the Assessing Officer observed that the assessee had earned a rental income of Rs. 3,00,24,690/- and interest income of Rs. 1,66,540/-. The Assessing Officer further observed that although the rental income received by the assessee was Rs. 3,00,24,690/- but while calculating the income from house property, the assessee had shown the rent only at Rs. 23,71,517/-. The Assessing Officer further noted that the assessee had wrongly claimed set off of brought forward business losses amounting to Rs. 1,74,540/- under the head 'income from other sources'. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd business losses. However, the submissions of the assessee on this issue did not find favour with the Ld. First Appellate Authority and these grounds were dismissed. 2.2 Now, the assessee has approached this Tribunal challenging the sustenance of additions/disallowances by the Ld. First Appellate Authority by raising the following grounds of appeal:- "1. Whether on the facts and in the circumstances of the case, the Learned Assessing Officer has grossly erred in law and on facts in enhancing the income from House Property by Rs. 42,32,071/-. The Learned CIT Appeal has also grossly erred in law and on facts in confirming addition to Rs. 19,72,308/- instead of deleting the entire addition to the income from House Property. 2. Whether o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16,59,284/- 5. Repair & Maintenance 9,07,761/- 6. Insurance 1,56,205/- Total 63,09,173/- 3.1 The Ld. AR submitted that this chart represents the breakup of various expenses incurred by the assessee in earning the rental income. It was submitted that the Ld. CIT(A), after considering the assessee's submissions, had deleted the disallowances pertaining to House Keeping Expenses, Security Expenses, Wages and Salaries but had confirmed the disallowance pertaining to Electricity Expenses amounting to Rs. 9,08,342/-, Repairs and Maintenance Expenses amounting to Rs. 9,07,761/- and Insurance Expenses amounting to Rs. 1,56,205/-. The Ld. AR further submitted that the Ld. CIT(A) had not given any reason for rejecting the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure out of the rental income was concerned, the 30% deduction allowed U/s 24(a) of the Income Tax Act, 1961 (hereinafter called 'the Act') subsumes all deductions but even then the Ld. CIT(A) had allowed benefit of further deductions to the assessee looking into the facts of the case. It was submitted that the amount of additions sustained by the Ld. CIT(A) were sustained after giving a thoughtful consideration to the assessee's submissions as well as the facts of the case, and, it was also submitted by the Ld. Sr. DR that the assessee could not justify the incurrence of electricity expenses by producing any electricity bill or by demonstrating with proof as to in whose name was the electricity connection held. She referred to the obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer. The Ld. AR has referred to the rental agreement, specifically clause-9(c) of the rental agreement, and has submitted that these details were overlooked by the Ld. First Appellate Authority, as well as the Assessing Officer. After giving thoughtful consideration to the contention of the assessee in this regard, we deem it appropriate to hold that the issue should be re-adjudicated by the Ld. CIT(A) after giving a proper opportunity to the assessee to present its case in this regard. The Ld. CIT(A) is also directed to consider and give benefit of the order of the ITAT Delhi Bench in the case of M/s Texaco Overseas Pvt. Ltd. in ITA No.4050/Del/2009, wherein it has been held that where quantification of charges for additional ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of the Ld. CIT(A) to be considered afresh and to be allowed proportionately after giving proper opportunity to the assessee in this regard. 5.2 As far as the issue of set off of brought forward business loss against income from other sources is concerned, the provision of section 72 are very clear that brought forward business loss can only be set off against business profit. The assessee itself has shown the interest income in its computation as income from other sources. Admittedly and undisputedly, the interest income comprises of interest on income tax refund amounting to Rs. 64,097/-, interest from electricity company amounting to Rs. 1,99,110/- and interest on fixed deposit amounting to Rs. 83,333/-. It is not coming out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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