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TMI Blog2019 (10) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... it is noted that the deductions are contemplated to the income computed under the head income from other sources, whereas as, in this present case the statement of total income as filed by the assessee in its paper book shows the assessee earned income from house property and claimed standard deduction U/s 24(a) of the Act @ 30% - income of the assessee are computed under the head income from house property and therefore, the application of deductions contemplated in the Section 57 of the Act does not arise at all, as the deductions are available u/s 57 of the Act if the income chargeable under the head income from other sources. Thus, AR's alternative deduction is not acceptable and are rejected. Payment to M/s. Aavishkar Corporation and claiming deduction on payment of interest - there was no evidence to show that a sum of ₹ 1,00,00,000/- spent for renovation and repairs before the Authorities below as well as before this Tribunal - claim of payment of interest as deduction cannot be seen separately to the fact that no evidence showing incurring of expenditure on account of repairs and renovation were not filed before us as well as both the Authorities below. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s)-13, Kolkata [hereinafter CIT(A) ] for AY 2012-13. 2. Ground no.-1 is general in nature and therefore, requires no adjudication. 3. Ground no.-2 is raised challenging the action of CIT(A) in confirming the addition made on account of payment of interest in the facts and circumstances of the case. 4. Heard both parties and perused the materials available on record. 5. It is noted from the record that the assessee has a property in Park Street which was let out for commercial purposes. The assessee claimed deduction on payment of interest on a loan availed from Vijaya Bank. According to AO a sum of ₹ 2,00,00,000/- was paid to M/s. Abiskar Corporation on 07.04.2006 for seeking surrender of tenancy right of a shop bearing no. 20K, Park Street, Kolkata. The balance ₹ 1,00,00,000/- stated to have been utilized for repair and renovation of the aforesaid property. The AO denied the deduction on account of payment of interest on the said loan of ₹ 3,00,00,000/- by observing that the payment of ₹ 2,00,00,000/- to M/s. Abiskar Corporation to surrender tenancy rights is capital in nature. ₹ 45,00,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no detail regarding such repair and renovation were submitted. In fact the AO has given reference of reply of the appellant where no proof of such expenses was submitted the relevant portion of assessment order of the AO is reproduced as under:- AR was asked to submit the evidence regarding repair and renovation expenditure and along with that, copy of municipal authorities permission. Because as per Kolkata municipal rules any major repair or renovation work job can only be done after taking permission from the corporation building department. In this instance as the amount involved is ₹ 1 crore it must be a major repair or renovation work. As no detail of repair or renovation and no document was submitted in support of that assessee claim that the amount of ₹ 1 crore was untilled for the purpose of earning or enhancing income is not accepted. Amount of interest paid on that amount is disallowed as business expenditure and added back to the total income of the assessee . Considering the fact stated above the AO as rightly disallowed the interest debited against income from house property which is not permissible as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 57 of the Act does not arise at all, as the deductions are available U/s 57 of the Act if the income chargeable under the head income from other sources. Thus, the submissions of Ld. AR are alternative deduction is not acceptable and are rejected. 8. Coming to the payment of ₹ 2,00,00,000/- to M/s. Aavishkar Corporation and claiming deduction on payment of interest thereon, it is noted that except for agreement between persons representing the said Aavishkar Corporation no such other evidence brought on record like a deed of rental agreement showing that M/s. Aavishkar Corporation is the tenant of assessee and it is noted that the AO did not dispute the same. The Only contention of the AO was that the payment of ₹ 2,00,00,000/- to M/s. Aavishkar Corporation to surrender its tenancy rights is capital in nature and when the deduction U/s 24(b) of the Act is given, no such other deduction is available. We find that on perusal of the agreement dated 07.04.2006 to surrender tenancy rights it is noted that the persons representing M/s. Aavishkar Corporation accepted and acknowledged receipt of ₹ 2,00,00,000/- from the assessee and would vacate and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed unconditionally. The standard deduction has been provided to take care of all related expenditure incurred for earning rental income. Any expenditure beyond 30% or in addition to the standard deduction is not permissible as deduction no matter how relevant it was for earning of rental income. It is assumed that blanket deduction takes care of all expenses incurred for earning rental income. Therefore, claim of expenditure on brokerage amounting to ₹ 1,10,300/- cannot be allowed as a deduction over and above the 30% standard deduction. I agree with the view of the AO. Once the income has been shown under the head of income from house property no separate deduction is allowable as per law. Therefore, the disallowance made on this account is upheld and the ground of appeal is dismissed. 12. Before us the Ld. AR reiterated the same submissions as advanced both the Authorities below. There is no dispute granting of standard deduction to the income earned under the head income from house property. The claim of granting deduction U/s 57(iii) of the Act was denied by the CIT(A) only on the ground that the deduction is not permissible under l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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