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TMI Blog2018 (4) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... totality, the assessee’s value in respect of properties is less than the Government approved valuer. Disallowance of expenditure incurred towards legal and professional charges - Held that:- The claim of business expenditure on account of legal and professional charges was disallowed solely for the reason that income from the said property is assessed under the head income from house property. However, it has been submitted before us by AR that only a part of the property was let out and other part is used for business purpose. Aforesaid factual aspect has not been examined by the Departmental Authorities. We are inclined to restore the issue to the file of the Assessing Officer for verifying assessee’s claim that part of the property is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm is engaged in the business of real estate development. For the assessment year under dispute, the assessee filed its return of income on 26th July 2011, declaring total income of ₹ 7,28,41,580. During the assessment proceedings, the Assessing Officer noticed that the assessee is the owner of a building situated at Connaught Circle, New Delhi, which has been given on rent to a number of tenants. He also noticed that the assessee has also offered rental income of ₹ 1,99,092 from the said property. From the records of the assessee for the assessment year 2007 08 and 2008 09, the Assessing Officer found that the property was given on rent to Hemkunt Chemicals Pvt. Ltd. for ₹ 733 per month who in turn sub let it to Bank of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erusal of record, it is seen that the issue relating to deemed rental income is a recurring dispute between the parties from assessment year 2003 04 onwards. While deciding assessee s appeal for assessment years 2003 04, 2004 05 to 2006 07 in ITA no.6701/Mum./2011 and others dated 4th March 2015, the Tribunal deleted the addition made by the Assessing Officer on account of deemed rental income. The same view was again reiterated by the Tribunal while deciding the assessee s appeal for the assessment year 2007 08 and 2008 09 in ITA no.3063/Mum./2013 and ITA no.3064/ Mum./2013, dated 7th September 2016. There being no material difference in facts brought to our notice, following the consistent view of the Tribunal in assessee s own case, we u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not have considered only few properties in respect of which the assessee s valuation is more than the Government approved valuer. He observed, if the Assessing Officer wanted to adopt the value determined by the Government valuer then he should have adopted such value in respect of all properties and should not have restricted only to the properties where the value of Government approved valuer was less than the value of the assessee. Accordingly, he deleted the addition of ₹ 1,06,821. 9. Having considered the rival submissions and perused material on record, we are of the view that the decision of the learned Commissioner (Appeals) on this issue is fair and reasonable. As could be seen from the materials on record, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that since the expenditure was incurred to protect assessee s right over the properties it is an allowable expenditure. The Assessing Officer, however, did not find merit in the submissions of the assessee. The Assessing Officer held that since the expenditure incurred was in relation to the property the income from which is assessable under the head house property, the professional and legal expenditure claimed cannot be allowed. The assessee challenging the disallowance before the first appellate authority. 13. The learned Commissioner (Appeals) after considering the submissions of the assessee, however, sustained the disallowance made by the Assessing Officer. 14. The learned Authorised Representative submitted that the property ..... X X X X Extracts X X X X X X X X Extracts X X X X
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