9911796707
TMI Blog2021 (2) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... g the action taken by the AO in treating the rental income from Operating Family Entertainment Center cum Mall and Maintenance Charges amounting to Rs. 11,96,62,440/- and Rs. 4,32,51,472/- respectively as "Income from House Property " against the assessee's claim of "Profit and Gains from Business or Profession" ii) "Whether on the facts and in the circumstances of the case and in law, The Ld. CIT(A) has erred on facts and in law in completely ignoring the decision of the Hon'ble Supreme Court in the case of Shambhu Investment (P) Ltd. vs CIT (2003) 184CTR (SC) 91: (2003) 263 ITR 143(SC) wherein it is held that income derived by an assessee by letting out furnished premises on monthly rent basis to various parties alongwith variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the opinion that the above income was to be treated as income from house property and not from income from business despite noting that the issue has been decided in favour of assessee by the honourable jurisdictional High Court. He also disallowed a sum of Rs. 5,97,63,427/- under section 24(b) of the Act. 5. The assessing officer has concluded as under:- 5.7 Further, as regards the contention of the assessee that the Hon'ble Bombay high Court has treated the rental receipts as business income, it is stated that the decision of the Hon'ble Bombay High Court has not been accepted and the Department has filed SLP before the Hon'ble Supreme Court which is pending. Hence, to maintain a consistent stand taken by the Department on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of property located in Chandigarh is for the lease/rental receivable, hence the adjustment on account of this loan is not allowed u/s. 24(b) of the Act. For the current year the interest paid in respect of Chandigarh property is Rs. 1,26,85,361/-, thus the same is disallowed as has been done in earlier years. Thus the assessee is eligible for deduction under section 24(b) of the Act at Rs. 5,97,63,427/- (7,24,48,788-1,26,85,361). 6. Against the order assessee appeal before the learned CIT(A). 7. Learned CIT(A) decided the issue in favour of assessee by referring to honourable jurisdictional High Court decision in assessee's own case as under:- "In Assessee's own case for AY 2007-08, 2009-10 and 2010-11, the same issue w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enance charges recovered is held to be business income. Business expenses claimed are also to be allowed against the same. 8. Similarly he decided the other issue in favour of assessee as under:- "Ground No. 3 is regarding disallowance of interest expenses of Rs. 1,26,85,361/-. Assessing Officer on the basis of earlier years held that the interest expense is not allowable u/s. 24(b). Since, I have already held above that the rental income of the assessee is a business income, the interest expenses is therefore allowable as business expense. Thus, Ground No. 3 is allowed." 9. Against the order assessee is in appeal before us. 10. We have heard both the parties and perused the records. Learned counsel of the assessee reiterated that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
