Parking Receipts Classified as Business Income, Not Rental Income; Depreciation Allowed Under Section 32 for Parking Facilities

The ITAT ruled that car parking receipts should be treated as business income, following precedents established in Radhasoami Satsang and National Leasing Limited cases. Depreciation claimed under s.32 on the building used for car parking was allowed, as the Tribunal determined parking facilities were incidental to the assessee's main hotel business. However, depreciation on plant and machinery for garden and clubhouse maintenance was denied since the assessee failed to meet the mandatory conditions of s.56(2)(ii) & (iii) and s.57(ii) by not showing related income. Regarding disallowed expenditures (legal fees, repairs, maintenance), the ITAT directed these expenses be allowed under s.37(1), rejecting the AO's contention that such expenses should be borne by the lessee (Mars Enterprises). .....

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