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2014 (12) TMI 510 - ITAT HYDERABADClassification of income – Rental income or income from house property – Held that:- CIT(A) rightly was of the view that no evidence or reasons were provided - the assessee is in the business of trading in various items and not in the business of purchasing properties and letting them out - in order for rental income to be considered as income from business, the assessee has to demonstrate that certain well planned activities were being carried out in that property for the purposes of profits so as to have that income qualify as business income - from the information available on record it is clear that the assessee is only a passive receiver of rent – the rental income is rightly classified as income from house property – Decided against assessee. Expenses disallowed u/s 37 – Held that:- CIT(A) rightly was of the view that no evidence was produced to show the genuineness of the expenditure - no business whatsoever was conducted by the assessee company during the year - not a single voucher or any other evidence was produced to substantiate the veracity of the expenses claimed – the order of the CIT(A) is upheld – Decided against assessee. Unexplained cash credits u/s 68 disallowed – Held that:- Though the CIT(A) called for Remand Report in respect of the credits, the AO failed to submit the same – thus, the matter is required to be remitted back to the AO for reconsideration and the assessee shall be provided sufficient opportunity to produce the required material before him – Decided in favour of assessee.
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