https://www.taxtmi.com/caselaws?id=764801 The ITAT Mumbai held that the assessee incorrectly computed rental income from factory premises under both house property and business income heads. The AO disallowed expenses including appeal filing fees, legal charges, and auditor payments, arguing the assessee had no business activity. The tribunal ruled that since the rented premises formed part of fixed assets, rental income should be treated under section 57 of the Income Tax Act, allowing proportionate related expenses to be claimed. The AO was directed to re-compute taxable income under section 57, considering proportionate expenses against rental income. The appeal was partly allowed. en-us Mon, 13 Jan 2025 00:00:00 +0530 Sat, 18 Jan 2025 08:47:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764801 The ITAT Mumbai held that the assessee incorrectly computed rental income from factory premises under both house property and business income heads. The AO disallowed expenses including appeal filing fees, legal charges, and auditor payments, arguing the assessee had no business activity. The tribunal ruled that since the rented premises formed part of fixed assets, rental income should be treated under section 57 of the Income Tax Act, allowing proportionate related expenses to be claimed. The AO was directed to re-compute taxable income under section 57, considering proportionate expenses against rental income. The appeal was partly allowed. Case-Laws Income Tax Mon, 13 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764801