TaxTMI 
TaxTMI 
2015 (10) TMI 807
X X X X Extracts X X X X
X X X X Extracts X X X X
....er dated 5th July 2013, passed by the Tribunal for passing appropriate order in terms of section 254(1) of the Income Tax Act, 1961 (for short "the Act"). 2. In the application, the assessee had contended as under:- "The applicant submits that during the course of the hearing before the Hon'ble Bench in para 6 has held that the rental income should be considered as "income from house property" and not as "business income" and no deduction for depreciation allowance or other administrative expenses should be allowed. The applicant with due respect to the Hon'ble Bench submits that besides earning business income, the applicant is carrying on leasing business namely, leasing of equipments/vehicles. A portion of the property was ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g other business of the assessee was at ` 84,42,734, out of which income from property is ` 14,10,000, which is 16% of the total receipts. Accordingly, he had allocated the administrative expenditure towards income from house property @ 16%. This ratio has been followed in all the years for allocation of expenses. The learned counsel further submitted that the learned Commissioner (Appeals) had allowed the entire expenditure including administrative expenditure by holding that the income from lease property is to be assessed as "business income". In the ground of appeal, the Revenue has not raised the issue of administrative expenses before the Tribunal. The Tribunal, while deciding this issue, held that leasing income from the property i.e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot permissible within the scope of section 254(2). 5. We have heard the rival contentions. The main grievance of the assessee before us in the miscellaneous application is that, firstly, the administrative expenses has been directed by the Tribunal to be disallowed even when, there was no specific ground taken by the Revenue and, secondly, the depreciation has been disallowed even on the portion of the premise, on which the assessee was using it for its own business purpose i.e., it was having its office in the said premise. In this case, the main issue involved was, whether the income from business centre should be treated as "business income" or "income from house property". The Assessing Officer held that the rent received from leasin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed. Insofar as the administrative expenditures are concerned, the Assessing Officer himself has worked out the disallowance of administrative expenditure after allocating on the basis of the receipts of the house property from the total receipts. This was a very reasonable basis for allocating administrative expenditure and once the income has been assessed as income from house property, then whatever administrative expenditure is pertaining to income from house property gets disallowed. There is no mistake apparent from record insofar as the direction of disallowance of administrative expenditures are concerned because what is disallowable is only 16% of the administrative expenses. As regards the second plea of depreciation that, at least....