2011 (12) TMI 690 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of disallowance of housekeeping charges treated as income from other sources.

Summary:
The Revenue filed an appeal against the order of the ld. CIT(A) deleting the disallowance of housekeeping charges made by the AO. The AO treated a portion of the receipts as income from other sources based on the nature of services provided and infrastructure available. The ld. CIT(A) deleted the addition following the Tribunal's decision in the assessee's own case for a previous year. The Revenue contended that no expenses were allowed for earning income from other sources. However, the Tribunal upheld the ld. CIT(A)'s decision, citing consistency in treatment of income and allowing depreciation under both heads. The Tribunal dismissed the Revenue's appeal, affirming the deletion of the disallowance.

In conclusion, the Tribunal upheld the ld. CIT(A)'s decision to delete the disallowance of housekeeping charges treated as income from other sources, based on consistency in treatment of income and allowance of depreciation under both heads.