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TMI Blog2018 (7) TMI 1994X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the learned Commissioner (Appeals) erred in not al lowing deduction amounting to Rs .2,5 2,543/-, in respect of expenses incur red on providing amenities to tenants, under the head "Income from House Property", following earlier appellate orders. 2. The learned Commissioner of Income Tax (Appeals) erred in giving a direction to the Assessing Officer to obtain necessary evidences, in respect of ground no. 1 above, when the said evidences were already on the record of the lower authorities. 3. Both the lower authorities erred in applying Section 14A in respect of investments held by the appellant, when the income received thereon is not tax-free income. 4. The appellant submits the learned Commissioner (Appeals) erred in confirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on expenses of Rs. 16,11,999/-. The AO observed that there is no express provision in the Income Tax Act to allow deduction other than Municipal Taxes paid and statutory deduction @ 30% for repairs under section 24 of the Act and consequently the expenses claimed by the assessee were disallowed. 5. In the appellate proceedings, the Ld. CIT(A) partly allowed the appeal of the assessee by observing and holding as under: "3.2. I have considered the findings of the Assessing Officer as well as rival submission of the Appellant, carefully. According to the clarification of the Assessee, it has incurred Electricity charges, Security charges, House Keeping charges and Salary to the Sweeper and ex-gratia to the contractual staff to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,701/-. Regarding Elphistone Building assessee has produced two agreements, one with tenant Tata Realty and Infrastructure Ltd. and another with Indian Overseas Bank where assessee /?ac entered into separate agreement for providing certain service for which separate payment is made by the tenants, whereas assessee has included this payment for services also in the rent and offered the some as rent for taxation, therefore, before arriving at annual value the amount received by the assessee on account of other services is to be excluded from the rent received. But assessee has further told that the entire amount received from these tenants on account of other services has not been spent and, therefore, proportionate amount spent for these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of confirmation of disallowance of Rs. 62,87,653/- by Ld. CIT(A) as made by the AO under section 14A read with rule 8D(2)(iii) and also disregarding the fact that the investments which did not yield any dividend were not excluded while calculating the disallowance. 11. The facts in brief are that the assessee received dividend income to the tune of Rs. 8,48,87,567/- and made a suo-moto disallowance of Rs. 12,79,280/-. The AO observed that since the working is not in accordance with the provision of section 14A read with rule 8D and accordingly invoked the provisions of section 14A read with Rule 8D directing the assessee to furnish a working of disallowance under these provisions. 12. The assessee submitted before the AO that disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been held by the Special Bench that investments not yielding any income during the year has to be excluded while calculating the average investments and only then disallowance has to be worked out. The Ld. A.R. prayed before the Bench that the AO be directed to compute the disallowance under Rule 8D(2)(iii) by not taking into account the investments which yielded no dividend during the year the details whereof are given at page No.64 of the paper book. 15. The Ld. D.R., on the other hand, relied on the order of authorities below. 16. After carefully considering the rival submissions of both the parties and perusing the material on record, we find that the AO has included those investments which yielded no exempt income during the year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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