9911796707
TMI Blog2016 (7) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... als with allowable deductions while computing the income of the house property. We therefore, do not find any merit in the case of the assessee and the arguments as advanced by the ld.AR and dismiss this ground of assessee by upholding the order of ld. CIT(A) on this issue. - Decided against assessee Allowability of expenditure u/s 57 - nature of income - assessee had claimed the expenses against the receipt of interest of FDRs, commission, speculative profit and loss from shares - AO was of the opinion that only receipt in the nature of business arising out of speculation in shares and the remaining receipts were in the nature of income of other sources and accordingly held that the expenses were not allowable u/s 57 - Held that:- the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of property which has been let out and the second ground is in respect of expenses of ₹ 21,06,469/- which were stated to be incurred wholly and exclusively for the purpose of business of investment etc however was not allowed by the AO and also upheld by the ld.CIT(A). 3. Facts in brief are that the assessee filed his return of income declaring total income of ₹ 59,40,420/- on 3.8.2010. The return was processed under section 143(1) of the Act. Thereafter, the case of the assessee was selected for scrutiny and the statutory notices u/s 143(2) and 142(1) were issued and served upon the assessee. It is seen from the para 4 of the assessment order that the assessee has earned a rental income of ₹ 90,13,537/- against which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e allowability of deduction on account of maintenance charges, the assessee has placed reliance on the decision of the Hon'ble Mumbai Tribunal in the case of Sharmila Tagore (supra) in support of his contention. However, in the case of Sharmila Tagore, what was held to be allowable as a deduction by the Hon'ble Tribunal even while determining the annual value of the property u/s 23, was maintenance charges paid to the housing society. In view of the same, the Assessing Officer is directed to verify whether the maintenance charges have been paid to the housing society. If the same is paid to the housing society, respectfully following the decision of the Hon'ble Mumbai Tribunal in the case of Sharmila Tagore (supra), the same sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs, the AO observed that the assessee has only activity of business from trading in shares in which no delivery of shares were taken and therefore the activity is of speculative in nature. Therefore, the AO held that the assessee was not carrying on any business except share trading and therefore the interest income from FDRs of ₹ 24,09,421/- was of the nature of income from other sources and was assessed accordingly and so was the commission of ₹ 12,000/- and held that the expenses claimed by the assessee of ₹ 21,06,469/- were not related to earning of interest at all which are in the nature of communication, car insurance, repairs salary, depreciation etc. and having no nexus with the earning of interest income and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the head "Income from Other Sources". The expenditures in question cannot be allowed as a deduction u/s 37 of the I.T. Act, 1961 as claimed by the assessee in the facts and circumstance') of the case. The assessee has also not shown as to how the expenditures in question have been laid out or expended wholly and exclusively for the purpose of making or earning the income from the fixed deposits. Hence, no deduction u/s 57 can be allowed to the assessee. The assessee has also not shown that these expenses have been incurred in the course of carrying out any business and that the same were laid out or expended wholly and exclusively for the purpose of any business or profession carried out by him. In view of the aforesaid re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same has to be taxed under the head income from other sources and was rightly assessed so. So far as admissibility of various expenses aggregating to ₹ 21,06,469/- is concerned, we are of the view that having regard to the nature of expenses, these were not incurred wholly and exclusively for the purposes of earning the income from other sources in order to be qualified for deduction u/s 57 of the Act which deals with the deduction of expenditure from the income and other sources. After considering facts and circumstances, we are of the opinion that the order passed by the ld. CIT(A) is correct and accordingly, we uphold he order of the ld. CIT(A) by dismissing the appeal of the assessee on this issue. 10. In the result, the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
