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TMI Blog2018 (3) TMI 1568X X X X Extracts X X X X X X X X Extracts X X X X ..... ses incurred by it. We notice that the crucial supplementary agreement dated 15.07.2008 was not produced before the A.O. Since, confirmation letter now produced before us and supplementary agreement was not before the A.O., in the interest of justice and equity, the matter needs to be examined afresh by the A.O. The A.O. shall dispose of the matter as expeditiously as possible, after affording a reasonable opportunity of hearing the assessee. - Decided in favour of revenue for statistical purposes. - ITA No. 411-412/Coch/2016 - - - Dated:- 22-3-2018 - Shri Chandra Poojari, AM And Shri George George K, JM Appellant by : Sri.M.V.Rudran, Addl.CIT-DR Respondent by : Smt.Preetha S.Nair ORDER Per George George K., JM Thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the order of the Commissioner of Income tax (Appeals) may be set aside and that of the Assessing Officer restored. 4. The brief facts of the case are as follows:- 4.1 The assessee is a firm having income from house property. For the assessment year 2009-2010, the return of income was filed on 01.10.2009 admitting a total income of ₹ 1,45,84,800. The assessment u/s 143(3) of the I.T.Act was completed vide order dated 30.12.2011, wherein the total income was assessed at ₹ 1,54,08,981. In the assessment completed, the assessee s claim of deduction towards diesel expenditure amounting to ₹ 67,83,906 was partly disallowed by restricting the allowance only to 2/3rd of the claim. The relevant portion of the A.O. s o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso against the order of reassessment passed u/s 143(3) r.w.s. 147 of the I.T.Act. The CIT(A) disposed off both the appeals vide separate orders (both dated 30.06.2016). The CIT(A) held that when the property was let out to the tenant, viz., M/s.Pentaloon India Retail Limited, there was no electricity connection from Tamil Nadu Electricity Board. The CIT(A) noticed that it was the responsibility of the assessee-landlord to provide the electricity connection and the tenant had incurred diesel generator expenditure for running its store. The CIT(A) noticed that diesel expenditure was reduced and the net amount was paid to the assessee. Therefore, it was concluded by the CIT(A) that the diesel expenditure was an allowable deduction and allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for renting out its fourth floor of the said premises to the same party. Since electricity connection from the Tamil Nadu Electricity Board was not obtained on time, the assessee had entered into a supplementary agreement with the tenant on 15.07.2008, whereby the assessee had agreed for deduction from rent the expenses incurred by the tenant for generating electricity by using diesel generator. As rightly pointed by the learned DR, diesel expenses are not admissible expenditure u/s 23 to 27 of the I.T.Act. However, in peculiar fact of the instant case, the moot point to be examined is whether by virtue of supplementary agreement dated 15.07.2008, the net rental receipt of the assessee is only the amount reduced by the diesel expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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