9911796707
TMI Blog2024 (2) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... f expenses aggregating to Rs. 55,34,578/-and charging tax at maximum marginal rate on the assessed income is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. NFAC has grievously erred in law and or on facts in not considering fully and properly the explanations furnished and the evidence produced by the appellant. 2.1 The Ld. NFAC has grievously erred in law and or on facts in upholding that total expenses of Rs. 55,34,578/- were not admissible u/s. 57(iii). The Id. NFAC has failed to appreciate that common expenses incurred out of the maintenance contribution collected from the members of the society (to meet with upkeepment and maintenance of the common amenities provided to the members) and the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued and served upon the assessee. Show cause notice under Section 143(3) of the Act was issued on 22.03.2022. In response to the said statutory notices, the assessee furnished the detailed submissions dated 13.07.2021, 03.12.2021, 04.12.2021 and 22.03.2022. The Assessing Officer observed that from the perusal of Schedule-OS 'income from other sources' the assessee has shown an amount of Rs. 6,16,121/- as gross income thereby giving the bifurcation as well. Against the same income, the assessee claimed deduction of Rs. 55,34,579/-. The Assessing Officer observed that the assessee has not clarified/gave explanation regarding expenses claimed under Section 57 of the Act for earning interest income from Banks, interest on income tax refund, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Rs. 49,18,458/-. The Ld. AR submitted that from the computation of tax, the Assessing Officer charged tax at 30% instead of the progressive rate as per normal slab. Therefore, the demand raised by the Assessing Officer is also not justified. The Ld. AR further submitted that the common expenses incurred out of maintenance contribution collected from members of the society to meet with upkeepament and maintenance of the common amenities provided to the members and the income derived from investment of such fund till their disbursement has to be deductible. The Ld. AR relied upon the decision of Hon'ble Supreme Court in the case of Secunderabad Club (Civil Appeal Nos.5195-5201 of 2012) wherein it is held that the net interest income earn ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
