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TMI Blog2015 (10) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the addition of ₹ 8,35,200/- as income from House property. b. The learned CIT(A) has failed to appreciate the facts and circumstances of the case and the submission of the Appellant, that no amount was chargeable under the head, Income from House Property . c. Without prejudice to (a) and (b), the learned CIT(A) erred in confirming the estimate of ALV at ₹ 8,35,200/- and failed to take into consideration that the amount of ALV should be restricted only to the Municipal Ratable Value of the property in question and cannot be made on any other estimate basis. d. Without prejudice to the above, the estimated income should be chargeable to tax under the head Business Income: 3. Agency Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estimate adopted while computing the said income from house property is excessive and unreasonable. 8. The Learned Counsel for the assessee Ms. Mrugakshi Joshi vehemently argued that the lower authorities had erred in making the addition on the ground that the amounts were chargeable under the head income from house property . The Learned Counsel for the assessee relied on the decision in the case of Popatlal Fulchand Vs ACIT ( 2009) TIOL-550-ITAT-MUM wherein it has been held as follows: Property owned by individuals and used by a firm, without paying any rent, whose partners are HUFs of the individuals owning the property can be said to be used for the purposes of business by such individuals and consequently its noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ou have handed over the vacant possession of the above premises today (i.e. 15.6.1998) as per ou7r verbal mutual understanding which has been agreed as under: 1) The total deposit of ₹ 75,00,000/- to be repaid as follows: a) On 15.6.1998 ₹ 40,00,000/- b) Balance by 31.3.1999 11. The Learned Counsel also filed the balance sheet as on 31.3.1996 with schedules for assessment years 1996-97 to 1999-2000. We find that the 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 Und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 2,14,336/- relates to bank margin given for guarantee. This disallowance has been upheld by Ld. CIT(A) on the ground that assessee did not file requisite details. Before us also no further details could be filed. Therefore, to this extent the disallowance is upheld. 4.1 In respect of another sum of ₹ 1,90,971/- Ld. AR referred to pages 66 to 69 of the paper book. It was submitted that in the course of its business activity said amount has become irrecoverable and, therefore, written off in the year under consideration. Thus, it was pleaded that the said amount is allowable as bad debt. He submitted that disallowance was upheld by Ld. CIT(A) on the ground that even during the course of appellate proceedings the assessee had remai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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