TMI Blog2021 (10) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... fact remains that the civil and electrical repairs which the assessee has carried out and are being claimed to the tune of ₹ 9,07,761/- is in addition to the deduction of 30% U/s 24(a) already allowed to the assessee on the gross rental income. We agree with the observation of the Ld. CIT(A) that the 30% statutory deduction U/s 24(a) of the Act would subsume all repairs and maintenance expenses - No force in the contention of the assessee on this issue and we dismiss the ground. Payment towards insurance policy - CIT(A) has made an observation that the copy of insurance policy was not made available. However, in paper book, insurance policy has been submitted and we note that it is a comprehensive insurance policy. However, since the Ld. CIT(A) did not have the benefit of examining this insurance policy, we again deem it fit to restore this claim of the assessee 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. Set off of brought forward business loss against income from other sources - As provision of section 72 are very clear that brought forward business loss can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority challenging the aforesaid additions. Before the Ld. First Appellate Authority, it was the assessee s submission that since the property had been given on rent, the assessee was under an obligation, as per the rent agreement to provide certain services. The assessee also provided copies of ledger account of the expenditure incurred towards earning of the rental income and submitted that a total expenditure of ₹ 63,09,173/- had been incurred for earning of the rental income and, therefore, there was a difference in the total rental income earned i.e., Rs,3,00,24,690/- and the income from house property offered to tax at ₹ 2,37,15,517/-. The Ld. First Appellate Authority allowed partial relief to the assessee on the issue. On the issue of the Assessing Officer not allowing brought forward losses to be adjusted against the interest income earned during the year under consideration, the assessee submitted before the Ld. First Appellate Authority that during the year under consideration, the interest income earned comprised of interest on income tax refund, interest from Electricity Board and interest on fixed deposits which were all in the nature of business income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,36,533/- 2. Security Expenses 20,41,048/- 3. Electricity 9,08,342/- 4. Wages Salary 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 ₹ 9,08,342/-, Repairs and Maintenance Expenses amounting to ₹ 9,07,761/- and Insurance Expenses amounting to ₹ 1,56,205/-. The Ld. AR further submitted that the Ld. CIT(A) had not given any reason for rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y expenses. Similarly, with respect to the repairs and maintenance expenses, it was submitted that the assessee s further claim of ₹ 9,07,767/- would tantamount to double benefit to the assessee because the assessee had already been allowed the benefit of deduction u/s 24(a) of the Act. With respect to the Insurance Policy, it was submitted that as per the Ld. CIT(A), the assessee did not provide any copy of the insurance policy to justify the claim. 4.1 On the issue of set off of brought forward business losses, the Ld. Sr. DR placed reliance on the order of the Ld. CIT(A). 5.0 We have heard the rival submissions and have also perused the material on record. As far as the issue of allowing deduction of expenditure claimed towards the rental income and as sustained by the Ld. CIT(A) is concerned, it is seen that with respect to the issue of electricity expenses, it is the observation of the Ld. CIT(A) that no electricity bill was produced to show as to in whose name was the electricity connection held. It has also been mentioned by the Ld. CIT(A) that the assessee could not demonstrate that it was obligatory on the part of the assessee to provide electricity for Air ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deem it fit to restore this claim of the assessee 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 ₹ 64,097/-, interest from electricity company amounting to ₹ 1,99,110/- and interest on fixed deposit amounting to ₹ 83,333/-. It is not coming out from records that the fixed deposits were maintained by the assessee out of some business necessity and apparently the fixed deposits were made out of savings from rental income which the assessee has itself offered to tax under income from house property. Interest from electricity company and interest from income tax refund are essentially again income from other sources . Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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