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2015 (10) TMI 1065 - ITAT MUMBAIAddition as income from House property or business income - allow the sister concern to use of premises - Held that:- Assessee had to borrow ₹ 75,00,000/- lacs from their associate concern for a short period and in consideration thereof allowed them to use the said building only for a period of one year. This is also been explicitly provide in the Memorandum of Understanding arrived between associates. The assessee firm also made the associate concern to pay for the maintenance and upkeep and outgoings. We also find that without such an arrangement with assessee would have had to borrow funds from outsiders and financial institutions. Hence it was a prudent business decision to allow the sister concern to use of its premises. The assessee was able to reduce its losses and get better financial results. Thus the intention of the assessee was for the purpose of business and not to earn rental income. Income is liable to be assessed as business income and depreciation is allowable to the assessee - Decided in favour of assessee. Disallowance of bank margin given for guarantee confirmed as assessee did not file requisite details - Decided against assessee. Bad debt written off disallowed - Held that:- The reply filed before the AO and details submitted along with letter dated 15/10/2008, clearly establish the claim of the assessee that the bad debt written off by the assessee was in respect of bills issued by the assessee to the said party. In this view of the situation, we are of the opinion that the claim of the assessee of a sum of ₹ 1,90,971/-, which is written off in the year under consideration is allowable and addition to that extent is deleted - Decided in favour of assessee.
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