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2017 (4) TMI 568 - ITAT MUMBAIDisallowance of depreciation on furniture and fixtures - rental income relating to which has been offered by the assessee under ‘Income from house property’ - Held that:- Admittedly, no separate lease rent deed has been executed from furniture and fixtures but the said furniture and fixtures are part of the leased units and have not been used for the business purpose of the assessee as the income derived from the said leased units has been offered by the assessee under the head ‘Income from house property’. The assessee has also claimed standard deduction as admissible on ‘Income from house property’ as per provisions of section 24 of the Act. Once the assessee has claimed the standard deduction in relation to the leased property which includes furniture and fixtures, in our view, the assessee is not entitled to further depreciation on such leased asset. This issue is accordingly decided against the assessee and in favour of the Revenue Proportionate disallowance of expenditure relatable to leased property - Held that:- CIT(A) has noticed that the assessee had been maintaining separate account for the maintenance charges received from each of the building rented out and as well as the expenditure actually incurred on maintenance of these buildings. The assessee had maintained separate account for maintenance charges and other common expenses incurred, which means the assessee has segregated out the expenses incurred on maintenance out of the common expenses and the same were not debited to profit and loss account and under these circumstances there was no question of further making of proportionate disallowance in relation to the maintenance of building/leasing activity. He, therefore, deleted further disallowance made by the AO except the suo-moto disallowance offered by the assessee. - Decided against revenue
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