2012 (8) TMI 1117 - AT - Income Tax

Tax Appeal: Revenue's Rs. 71,30,158 Income Addition Dispute Resolved

The Revenue's appeal against the deletion of an addition of Rs. 71,30,158 as income from other sources was dismissed. The Assessing Officer had ... - Issues involved: Revenue's appeal against deletion of addition of House Keeping charges without considering previous ITAT decision and ongoing High Court matter.Summary:The Revenue made an addition of Rs. 71,30,158 as income from other sources due to inadequate staff and infrastructure for providing housekeeping services. The Assessing Officer treated a portion as business income and the balance as income from other sources. Penalty proceedings were initiated u/s 271(1)(c) for inaccurate particulars of income. In appeal, the CIT(A) deleted the addition based on previous ITAT decisions in the assessee's favor, emphasizing consistency in treatment of income. The ITAT upheld the CIT(A)'s order, noting that the entire exercise was academic and unnecessary. The depreciation cannot be disallowed whether income is assessed under business or other sources. The order of the CIT(A) was upheld, and the Revenue's appeal was dismissed based on jurisdictional ITAT decisions.In conclusion, the Revenue's appeal was dismissed, and the addition of Rs. 71,30,158 was deleted based on the ITAT's decision in the assessee's own case and the principle of consistency in income treatment.