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TMI Blog2011 (3) TMI 1823X X X X Extracts X X X X X X X X Extracts X X X X ..... iness expenses treating the same as incurred for earning of rental income. The Ld. ACIT grossly erred in holding that common expenses are spent for earning rental income and arbitrary allocating of these expenses without any justification and disallowing of ₹ .5,67,787/- out of common business expenses. 2. The Ld. Appellant seriously erred in giving a working for allocation of common expenses wrongly stating that it has been given by the appellant. Vide letter dt. 12.12.2007. 3. The Ld. ACIT seriously erred in law and on the facts and in the circumstances of the case by treating Loss on derivatives as speculation loss ignoring the decision of Hon ble ITAT (Bombay) given in the case of Dy. CIT v/s. SSKI investors Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) he has decided the issue vide para 2.3 which is as under :- 2.3 Most of the expenses except payment of staff and travelling and conveyance and vehicle maintenance relate to the office administration. The office is maintained for all the different activities from which income is earned. The office expenses should be spread over all expenses proportionately. The common expenses which have nexus with the property works out to ₹ .5,30,843/-. The proportionate expenditure at 67.83% works out to ₹ .3,60,070/-. The disallowance of ₹ .5,67,787/- is, therefore, restricted to ₹ .3,60,070/-. 5. Before us, the learned Counsel for the assessee referred to page 1 of the computation and pointed out that assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 121 ITD 498 (Kol). 11. On the other hand, learned DR supported the order of the learned CIT (Appeals). 12. After considering the rival submissions, we find that special bench of the Tribunal in case of Shree Capital Services Ltd. (Supra) has held that Clause (d) of the proviso to section 43(5) is of prospective nature and would apply from 01.04.2006 and, therefore, the loss on account of futures and options was rightly to be treated as speculative loss. Following this decision, we confirm the order of the learned CIT (Appeals). 13. Gr.No.3 After hearing both the parties we find that assessee had made a claim of ₹ .2,32,992/- paid as occupancy charges, and the same was claimed as deduction. The AO observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of income. Income from rent from house property is required to taxed in Chapter IVC known as computation of total income from house property. Section 24 gives the items of deductions and only tow types of deductions are allowable now (a) 30% of the annual value and (b) interest incurred towards purchase etc. on such property subject to some other limitations. It has to be remembered that, earlier section 24 before its amendment by Finance Act, 2001 contained many other deductions which have now been restricted only tow types of deductions. It is further settled that while computing the income under a particular head deductions can be given only if the same are provided under that chapter. This become further clear from the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s.24 provides for the deduction of the expenses incurred towards stamp duty or registration in respect of the lease of the house property. Held accordingly, that the assessee-firm was not entitled to deduction of a half share of the stamp duty and registration charges borne by it in respect of a lease of its house property for a period of five years, in computing its income for the house property. 19. Since no deductions for occupancy charges were provided u/s.24, the same is not allowable. In these circumstances, we find nothing wrong with the order of Learned CIT(A) and confirm the same. 20. In the result, the assessee s appeal is partly allowed for statistical purposes. Order pronounced on this 25th day of Marc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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