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TMI Blog2018 (4) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... rty, this being a consequential issue, the same is dismissed. Disallowance of maintenance expenses - AO has disallowed the expenses because the assessee’s income is assessed as income from house property - Held that:- We find that this issue has not been adjudicated by CIT(A) despite specific ground raised before him. However, this issue needs to go back to AO for the simple reason that it is to be verified whether these expenses are claimed by assessee net of the rental receipts or these are inclusive in the gross receipts. In case these are inclusive of gross receipts, the AO has to take ALV of the property excluding these expenses. For re-deciding this issue, the matter is set aside to the file of the AO Addition of difference amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowing the depreciation, maintenance expenses and also salary, wages and bonus, travelling and office expenses. The issue is exactly identical in all the three years and facts and circumstances are also exactly identical as conceded by both the sides. Hence, we will take up the facts from AY 2006-07 in ITA No. 631/Mum/2012 and will decide the issue. The following is ground No. 1 (a), (b), (c) (d) raised by assessee: - 1. (a) The Commissioner of Income-tax (Appeals) erred in confirming the action of treating the rental Income of ₹ 23,21,533/- as Income from House property instead of Business Income . ( b) The Commissioner of Income-tax (Appeals) erred in confirming the disallowance of Depreciation of ₹ 2,96,571/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence agreements placed on record the assessee as owner and is in possession of the premises on 5th floor of the building known as Kakad Chamber in World Division has leased out the property. Likewise the residential flat in Navi Mumbai was also leased out as mentioned in the lease agreement. Most of the agreements placed on record indicate that leave and licence agreement without any service being rendered to the tenants other than normal maintenance and repair work. In view of this, even though the assessee tried to distinguish the judgement of the Shambhu Investments the principles established therein are clearly applicable. Since it is exploitation of property the amount is taxable under the head House property income. Accordingly, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e simple reason that it is to be verified whether these expenses are claimed by assessee net of the rental receipts or these are inclusive in the gross receipts. In case these are inclusive of gross receipts, the AO has to take ALV of the property excluding these expenses. For re-deciding this issue, the matter is set aside to the file of the AO. Similar is the issue regarding expenses of salary, wages and bonus, travelling and office expenses amounting to ₹ 5,25,456/-. On similar reasoning s this is also set aside to the file of the Assessing Officer. 9. The next issue in these two appeals i.e. for AY 2006-07 and 2007-08 in ITA No. 631/Mum/2012 and 928/Mum/2011 respectively for both the years i.e. for AY 2006-07 and 2007-08 is as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was irreversible credit offered to manufacturers upon purchase of duty paid raw materials and that would not amount to income. Hon ble High Court observed in Para 5 and 6 as under : - 5. We have considered the submissions. It is not disputed that the assessee was liable to excise duty. The assessee got credit in the excise duty already paid on the raw materials purchased by it and utilized in the manufacturing of excisable goods. The assessee was adopting the exclusive method i.e. valuing the raw materials on the purchase price minus (-) the Modvat credit. The same would be permissible. The Apex Court in the case of Indo Nippon Chemicals Co. Ltd. (supra) while affirming the order of High Court, has observed that the income was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee s claim that it has received an amount of ₹ 14,14,819/- on 15.12.2004. The AO verified this amount from the ledger copies submitted by M/s Shriram Rayons under section 133(6) of the Act to the Assessing Officer. There was difference in the opening and closing balance as per the ledger account of M/s Shriram Rayons, wherein credit balance was ₹ 92,267 and assessee s accounts it was claimed at ₹ 14,14,819/-. The assessee could not reconcile the discrepancy and AO added the same. The CIT(A) also confirmed the action of the Assessing Officer. 15. Before us, the learned Counsel filed details of reconciliation, which were not filed before AO. When these details were confronted to the learned Sr. Departmental Representati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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