9911796707
TMI Blog2025 (1) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... use property against which standard deduction has been claimed further the expenses has been claimed in the profit and loss account and the rent received is also declared as income from under the head other income, this categorically clear from Schedule-I to the profit and loss account. Assessee computed the rental income received under the income from house property as well as business income which is not the right procedure. No doubt, the rental income received, from the factory premises, amounts to income under the head house property. However, considering the fact that the premises rented out formed part of the fixed Schedule assets, it would be appropriate if the rental income received is considered u/s 57 of the Act, wherein all relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior to issue of notice u/s 148 of the I.T. Act, 1961 were not provided to the appellant. 3. The notice issued under section 148 of the I.T.Act, 1961 being a vague notice is ab-initio void. 4. The notice issued under section 148 of the I.T.Act, 1961 is ab-initio void, for want of sanction by designated authority. Consequently, assessment order passed in pursuance of said notice is also ab-initio void 5. The learned lower authorities have grossly erred in disallowing / confirming disallowance of expenses to the extent of Rs. 6,78,980/-. Reasons assigned for the impugned disallowance are wrong and contrary to settled legal position. 6. The learned lower authorities have grossly erred in not appreciating the fact that in case of a private limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter was issued asking upon assessee to furnish the details as called for. In compliance, assessee vide letter dated 12.12.2017 filed details such as computation of income, financial statements, copy of acknowledgment of return filed on 11.12.2017 declaring total income of Rs. 2,54,132/-. 2.3. The Ld. AO after verification of the details observed that, assessee has earned income from rent and interest income during the year under consideration and has claimed expenses in the books of account amounting to Rs. 7,62,261/-. The Ld. AO was of the opinion that, the assessee did not have any income arising out of the business activity and hence disallowed the expenditure claimed to the extent of Rs. 6,78,980/-. 2.4. The Ld. AO observed that, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbership Subscription 11,025 Office Expenses 18,127 Office Rent 20,316 Payment to auditors 13,788 Repairs Maintenance charges 8,640 Telephone Charges 34,147 Vehicle Insurance 3,720 Vehicle Expenses 38,699 7,62,261 5.1. He submitted that, out of the above expenses the Ld. AO allowed expenses to the extent of Rs. 26,899/- being appeal filing fee, legal and professional charges and payment to the auditors. 5.2. The Ld. A.R. submitted, that the other expenses disallowed are without any basis as there was no business income for the year under consideration. He submitted that, on perusal of the above expenses none of the expenses could be categorized as not for the purposes of business. He submitted that, assessee, being a private limited company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome was actually earned for sometime from the assets which were in possession of the company that fact was not relevant for considering the assessee s claim of deduction of expenditure incurred for holding these assets. 5.6 On the contrary, the Ld. D.R. relied on the orders passed by the authorities below. I have perused the submissions advanced by both the sides in the light of records placed before me. 6. It is noted from the records that the assessee has computed the rent receipt from the factory premises as income from house property against which standard deduction has been claimed further the expenses has been claimed in the profit and loss account and the rent received is also declared as income from under the head other income, this ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
