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TMI Blog2019 (3) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal') in Income Tax Appeal No. 350/L/2016. The present appeal was admitted by this Court on 04.01.2018 on the following question of law: "(I) Whether, on a true and correct interpretation of law, the treatment of receipts from rent, derived from surplus space being let-out has rightly been classified by the Ld. ITAT as "Business Income" as against the appellant's claim of it being is taxable under the head "Income from House Property"? (II) Whether, the impugned order of the ITAT is in accordance with law as the ITAT has recorded its findings ignoring a very specific argument made the assessee resulting in recording of perverse findings and has drawn inoculate conclusions.?" The facts of the case are that the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orms business income and deduction under section 24 of the Income Tax Act was not permissible. The Assessing Authority has disallowed the deduction of Rs. 3,75,000/- and disallowed a further sum of Rs. 20,736/- as claimed as travelling & conveyance expenses and Rs. 50,000/- as freight and cartage and added back to the total income of the assessee. Feeling aggrieved by the aforesaid order, the appellant - assessee filed an appeal and the same was dismissed by the Commissioner of Income Tax (Appeals) vide order dated 16.03.2016. Still feeling aggrieved, the appellant - assessee filed an appeal before the Tribunal, who, by the impugned order, has partly allowed the appeal of the assessee, but has confirmed the disallowance under section 24 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or ancillary to the attainment of main objects is mentioned, which is as follows: "7. To let out on lease or on hire the whole or any part of the property of the company on such terms as the company shall determine." From the perusal of the said memorandum of association, it reveals that the object of the Company is also to have business income from letting out the whole or part of the property of the Company. From the perusal of the record, it also reveals that the assessee has claimed depreciation on the building, which was let out and on the other hand, wants to claim deduction under section 24 of the Income Tax Act as house property. In the case of Raj Dadarkar & Associates (supra), relevant paragraph nos. 14 and 19 of the said judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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