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TMI Blog2021 (10) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be allowed by the Ld. CIT(A). Expenditure on repairs and maintenance expenses - The fact remains that the civil and electrical repairs which the assessee has carried out and are being claimed to the tune of 9,07,761/- is in addition to the deduction of 30% U/s 24(a) already allowed to the assessee on the gross rental income. We agree with the observation of the Ld. CIT(A) that the 30% statutory deduction U/s 24(a) of the Act would subsume all repairs and maintenance expenses - No force in the contention of the assessee on this issue and we dismiss the ground. Payment towards insurance policy - CIT(A) has made an observation that the copy of insurance policy was not made available. However, in paper book, insurance policy has been submitted and we note that it is a comprehensive insurance policy. However, since the Ld. CIT(A) did not have the benefit of examining this insurance policy, we again deem it fit to restore this claim of the assessee to the file of the Ld. CIT(A) to be considered afresh and to be allowed proportionately after giving proper opportunity to the assessee in this regard. Set off of brought forward business loss against income from other sources - As provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aforesaid additions. Before the Ld. First Appellate Authority, it was the assessee's submission that since the property had been given on rent, the assessee was under an obligation, as per the rent agreement to provide certain services. The assessee also provided copies of ledger account of the expenditure incurred towards earning of the rental income and submitted that a total expenditure of ₹ 63,09,173/- had been incurred for earning of the rental income and, therefore, there was a difference in the total rental income earned i.e., Rs,3,00,24,690/- and the income from house property offered to tax at ₹ 2,37,15,517/-. The Ld. First Appellate Authority allowed partial relief to the assessee on the issue. On the issue of the Assessing Officer not allowing brought forward losses to be adjusted against the interest income earned during the year under consideration, the assessee submitted before the Ld. First Appellate Authority that during the year under consideration, the interest income earned comprised of interest on income tax refund, interest from Electricity Board and interest on fixed deposits which were all in the nature of business income and, therefore, the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsurance 1,56,205/- Total 63,09,173/- 3.1 The Ld. AR submitted that this chart represents the breakup of various expenses incurred by the assessee in earning the rental income. It was submitted that the Ld. CIT(A), after considering the assessee's submissions, had deleted the disallowances pertaining to House Keeping Expenses, Security Expenses, Wages and Salaries but had confirmed the disallowance pertaining to Electricity Expenses amounting to ₹ 9,08,342/-, Repairs and Maintenance Expenses amounting to ₹ 9,07,761/- and Insurance Expenses amounting to ₹ 1,56,205/-. The Ld. AR further submitted that the Ld. CIT(A) had not given any reason for rejecting the assessee's reply in this regard. 3.2 The Ld. AR submitted that as far as the claim of Electricity Expenses amounting to ₹ 9,08,342/- was concerned, these expenses were on account of electricity cost for Air-conditioning services, power back-up and expenses for common area. With respect to the assessee's claim of Repairs and Maintenance Expenses, it was submitted that these repairs were mainly towards civil and electrical maintenance expenses which was necessary for the purpose of keeping the propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sr. DR placed reliance on the order of the Ld. CIT(A). 5.0 We have heard the rival submissions and have also perused the material on record. As far as the issue of allowing deduction of expenditure claimed towards the rental income and as sustained by the Ld. CIT(A) is concerned, it is seen that with respect to the issue of electricity expenses, it is the observation of the Ld. CIT(A) that no electricity bill was produced to show as to in whose name was the electricity connection held. It has also been mentioned by the Ld. CIT(A) that the assessee could not demonstrate that it was obligatory on the part of the assessee to provide electricity for Air-conditioning services, power back-up and expenses relating to common area. On the other hand, it is the assessee's claim that relevant details in this regard had been produced before the Assessing Officer. The Ld. AR has referred to the rental agreement, specifically clause-9(c) of the rental agreement, and has submitted that these details were overlooked by the Ld. First Appellate Authority, as well as the Assessing Officer. After giving thoughtful consideration to the contention of the assessee in this regard, we deem it appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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