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TMI Blog1979 (4) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... . AAC had erred in directing the ITO to allow repairing expenses of Rs. 43,960 relating to the Mazdoor Line from business income". 3. At the time of hearing, leave was sought for by the Revenue to raise the following additional ground: "Without prejudice to the main grounds, he learned AAC of income-tax went wrong in directing that the entire amount of Rs. 43,960 is to be allowed as repairing expenses of Mazdoor Lines without examining whether the amount is wholly or partly comprised of expenses of a capital nature." 4. We are of the opinion that this additional ground is in furtherance of clarification and is supplementary and complementary to ground No. 2 originally taken by the Revenue and very item of expenses in this ground ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief to the assessee and directed the ITO to reduce the rental receipt under house property income by Rs. 12,435 and to treat the same as income from business and for recomputing the income under the two heads separately. The AAC further held that the ITO was not correct in disallowing the sum of Rs. 43,960 in consequence of his treating income from Mazdoor Lines as income from business and deleted this allowance in the sum of Rs. 43,960 as being related to business. 7. This time, the Revenue felt aggrieved. Hence, we are seized of the matter. The Revenue has contended before us that, out of the total rental income of Rs. 4,27,685 income from Mazdoor Lines was Rs. 12,435 only, the bulk of the chunk, that is a sum of Rs. 4,15,251 represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rental income received (Rs. 4,15,251) from outsiders, that is other than the employees and mazdoors of the assessee, as income from house property and taxable as such. Accordingly, we hold that a sum of Rs. 12,435 being the rental income received from Mazdoor and employees in respect of Mazdoor Lines shall be treated as income from business, while the rental income received from outsiders in the sum of Rs. 4,15,251 shall be treated as income from house property. To that extent, we uphold the order of the AAC. 10. With regard to the sum of Rs. 43,960, being the amount claimed by the assessee as repairing expenses on Mazdoor Lines and since allowed by the AAC, we are of the opinion that in the light of the above bifurcation of rental ..... X X X X Extracts X X X X X X X X Extracts X X X X
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