TMI Blog2023 (3) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... anced the loan out of common pool and no other facts have been brought on record before the Tribunal we do not find any illegality or perversity in the impugned findings given by the CIT(A). The assessee despite availing numerous opportunities has failed to appear before the Tribunal to assist the Bench to unsettle the findings returned by the CIT(A). Income from house property - Treating the business centre income generated from providing business facilities as income taxable under the head income from house property - HELD THAT:- There is nothing on record if the findings returned in the earlier years have been disturbed. The assessee has not come up before the Tribunal to explain as to how the said income is to be treated as bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st each other, the case of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a non deliberate delay so we condone the delay in filing the present appeal. 3. The assessee by filing the present appeal, sought to set aside the impugned order dated 22.01.2016 passed by Commissioner of Income Tax (Appeals), Mumbai [hereinafter referred to as the CIT(A)] qua the assessment year 2010-11 on the grounds inter-alia that :- 1. The Hon'ble Commissioner of Income Tax (Appeal) has erred in confirming the Order of Assessing Officer in reducing WIP on account of proportionate disallowance of interest expense of Rs.1,73,04,183/- capitalised to WIP mainly incur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department survey action under section 133 of the Income Tax Act, 1961 (for short 'the Act') was carried out, during which it was found that in standard purchase procedure the purchase bills are accompanied by delivery challan, weighment slip, goods test slip, goods receipt note etc. However, the Assessing Officer (AO) noticed that the purchase bills from certain parties are not corroborated with supporting documents viz. delivery challan, weighment slip, goods test slip, goods receipt note etc. The AO has given numerous opportunities to the assessee to bring on record the supporting documents but he failed to do so. The AO after thrashing the facts on the basis of survey proceedings and statement recorded by the investigation wing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal: 1. Challenging the order of Ld. CIT(A) confirming the assessment order in reducing the work in progress (WIP) on account of proportionate disallowance of interest expenses of Rs.1,37,04,183/- capitalised to WIP mainly incurred on account of secured loans 2. That Ld. CIT(A) erred in confirming the order of AO in treating the business income of Rs.1,00,91,601/- generated from providing business facilities as income taxable under the head income from house property . 9. The Ld. CIT(A) after duly thrashing the facts decided both the aforesaid issues against the assessee by returning following findings: 4. As regards ground No. 1, the facts are that the assessee had taken loan amounting to Rs 411.9 crores against which the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd utilized for the purpose of business or to be invested in a manner in which it generates income and not that is diverted towards sister-concern free of interest. This would result in not presenting true and correct picture of the accounts of the assessee as at the cost being incurred by the assessee, the sister-concern would be enjoying the benefits thereof. It cannot possibly be held that the funds to the extent diverted to sister-concerns or other persons free of interest were required by the assessee for the purpose of its business and loans to that extent were required to be raised. We do not subscribe to the theory of direct nexus of the funds between borrowings of the funds and diversion thereof for non business purposes. Rather, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies like provision for security, electricity, water provisions etc. It is therefore submitted that income earned is charged for providing business facilities to the parties and is not a plain rent. From the facts, it is clear that the primary intention of the assessee is to earn rent from letting out the property and the ancillary services provided are attached to such letting out of the property. Therefore relying on the decision in the case of Shambu Investments Ltd vs. CIT 263 ITR 143(SC), this ground of appeal is dismissed. 10. We have perused the order passed by the Ld. CIT(A). Undisputedly assessee has taken loan of Rs.411.9 crore against which claimed interest expenses of Rs.59.91 crore but at the same time the assessee has als ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
