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TMI Blog2014 (4) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... ,Mumbai, Assessing officer (AO) has raised following Grounds of Appeal : "1.Whether on facts and in the circumstances of the case and in law the ld. CIT(A) has erred in holding the rental income of Rs. 2,20,33,759/- should be treated as Business income". 2.On facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that rental expenses of Rs. 2,20,33,795/- and depre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 993/-, that net profit had been arrived at Rs. 81,67,346/-,that the assessee company had claimed lease rent as business income.He asked the assessee ,vide questionnaire dated 17.09.2008,to explain as to why the rental income from property should not be treated as 'Income from House Property'.In response,it was submitted that the leasing of property itself was the business of the assesseecompany an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,511/-.Vide his order dated 18.12.2008 passed u/s.143(3) of the Act,he completed the assessment on a total income of Nil after allowing set off of unabsorbed depreciation of Rs. 1,66,97,023/-. 3.Against the order of the AO,assessee-company preferred an appeal before the First Appeal Authority(FAA).After considering the submissions of the assessee and the assessment order he held as under : 2.3 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order the Assessing Officer has not allowed expenses of Rs. 49,06,358/- and depreciation of Rs. 68,81,881/- on building and depreciation on furniture amounting to Rs. 2,92,390/-. The Assessing Officer has not allowed depreciation and other expenses since he held that rental receipts from the building are required to be taxed under the head "Income from house Property". Since, I held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has consistently held that income of the assessee should be assessed under the head income from business and it should be allowed expenses incurred by it in carrying out its business.Depreciation claimed by the assessee has also been allowed by the Tribunal.FAA has granted relief to the assessee,in pursuance of the orders of the Tribunal. Thus, there is no legal infirmity in his order.Therefore, r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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