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2021 (1) TMI 1084 - AT - Income TaxDisallowance of 30% deduction for repairs u/s 24 - rental income received by the appellant by holding that the relevant income was service charges and not rent - HELD THAT - The issue under consideration in respect of the disallowance pertaining to income from house property is identical to earlier Assessment Years and there being no change in facts and circumstances, we see no reason to uphold the disallowance as upheld by the Ld. CIT (A). We also note that the identical issue was decided in favour of the assessee and against the Revenue in earlier orders of the Tribunal for Assessment Years 2001-02, 2002-03 2003-04. The copies of all these orders have been placed before us and no contrary material or any higher Court s orders have been placed on record to show that such earlier orders of the Tribunal have been reversed by any higher forum. Therefore, following the precedents as citied above in assessee s own case, we set aside the order of the Ld. CIT (A) on the issue and direct the deletion of disallowance. Disallowance of legal and professional fees - HELD THAT - As following the order of the Tribunal in earlier assessment years as aforesaid in assessee s own case and on identical facts 2015 (8) TMI 38 - ITAT DELHI , and 2010 (8) TMI 972 - ITAT DELHI we set aside the order of the Ld. CIT (A) on the issue of disallowance of legal and professional charges and direct the deletion of the same. Disallowance of depreciation - HELD THAT - The issue has been decided in favour of the assessee right from Assessment Years 2001-02 to Assessment Years 2012-13 and on this issue also there has been no reversal of the order of the Tribunal by any higher judicial forum. Thus, this issue has also attained finality. Respectfully following the same, we uphold that action of the Ld. CIT (A) in deleting this disallowance of deprecation.
Issues:
1. Disallowance of 30% deduction for repairs on rental income. 2. Disallowance of expenses incurred in providing services to the tenant. 3. Disallowance of litigation fees. 4. Addition made on account of disallowance of depreciation. Analysis: Issue 1 - Disallowance of 30% deduction for repairs on rental income: The assessee's case involved a dispute regarding the deduction of repairs on rental income. The Assessing Officer disallowed a portion of the claimed deduction, citing a service agreement with the tenant and previous assessment years' rulings. The CIT (A) upheld the disallowance. However, the Tribunal referred to previous orders in the assessee's favor for similar issues in earlier assessment years. As there were no changes in facts or circumstances, the Tribunal set aside the CIT (A)'s decision and directed the deletion of the disallowance amount. Issue 2 - Disallowance of expenses incurred in providing services to the tenant: The dispute involved the disallowance of expenses incurred in providing services to the tenant without actual expenditure. The CIT (A) upheld this disallowance, but the Tribunal referred to earlier orders favoring the assessee in similar cases. As there was no contrary material presented, the Tribunal set aside the CIT (A)'s decision and directed the deletion of the disallowance. Issue 3 - Disallowance of litigation fees: The dispute centered around the disallowance of litigation fees incurred for defending cases challenging the company's operations. The CIT (A) disallowed a portion of the fees, stating they were not wholly and exclusively for business purposes. However, the Tribunal referenced previous orders in the assessee's favor for similar issues in earlier assessment years. As there was no reversal of these orders by a higher judicial forum, the Tribunal set aside the CIT (A)'s decision and directed the deletion of the disallowance. Issue 4 - Addition made on account of disallowance of depreciation: The Department appealed the deletion of disallowance of depreciation by the CIT (A). However, the Tribunal noted that this issue was also covered in favor of the assessee by previous orders in the assessee's own case for earlier assessment years. As there was no reversal of these orders by a higher judicial forum, the Tribunal upheld the CIT (A)'s decision to delete the disallowance of depreciation. The Department's appeal was dismissed due to the disputed tax amount being below the monetary limit for filing appeals before the Tribunal. In conclusion, the Tribunal allowed the assessee's appeal and dismissed the Department's appeal, pronouncing the order on 29th January 2021.
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