TaxTMI 
TaxTMI 
2016 (8) TMI 46
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....: Rs. 2,97,424/-, (iii) Travel and Conveyance: Rs. 87,744/-, (iv) Rate and Taxes: Rs. 3,000/- and (iv) Bank Charges : Rs. 63,005/- on proportionate basis, holding that the same were incurred for the purposes of earning income by way of rent. He failed to appreciate that the said expenses were incurred for the purposes of the business of the Appellant; 3. That the Commissioner (Appeals) erred in confirming the disallowance of depreciation of Rs. 3,84,684/-. He erred in holding that there was no justification for capitalizing the proportionate lease rent for the area used for the installation of the Plant & Machinery to the block of. Plant & Machinery; 4. That the conclusions and inferences of the Assessing Officer and/or Commissioner (Appeals) are based on suspicions, conjectures, surmises and extraneous and irrelevant considerations; 5. That the reliefs prayed for may kindly be allowed and the order(s) of the Assessing Officer and/or Commissioner (Appeals) may kindly be quashed, set aside, annulled or modified; 6. That the aforesaid Grounds of Appeal are without prejudice to each other; 7. That the Appellant craves leave to vary, alter, ....
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.... rental income, though assessee was also rendering services, which was assessable as business income, considered the opening WDV pertaining to plant & machinery used for maintenance and services at Rs. 3,14,33,917/-, after considering the depreciation already claimed by the assessee. Further, considering the addition of asset during the year amounting to Rs. 4,76,696/-, the allowable depreciation to the assessee for its business income was computed at Rs. 79,77,653/- and since the assessee had claimed depreciation of Rs. 1,10,06,901/-, made a disallowance of Rs. 30,29,247/-. 6. Apropos first issue regarding allocation of common expenses, ld. CIT(A) allowed the assessee's claim as regards the professional fees paid to M/s Knight Frank (India) Pvt. Ltd. being services charges paid to them. However, he upheld the AO's action in appropriating the expenses relating to audit fees, travel and conveyance, rates and taxes and bank charges between rental income and service income. 7. Apropos the issue relating to depreciation, ld. CIT(A) confirmed the AO's action to the extent of disallowance of depreciation claimed by assessee relating to capitalized lease rent on the ground that the ....
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....auditors' remuneration could not be allocated only towards service income, because auditors have audited the rental income also, which was reflected in the P&L A/c. Therefore, AO as well as ld. CIT(A) were justified in proportioning this expenditure. 16. The second item is regarding accounting and legal charges. Before ld. CIT(A) the assessee had pointed out that accounting charges amounting to Rs. 1,74,775/- were paid to M/s Perfect Accounting System for writing the books for the year. Therefore, this had to be allocated between rental income and service income, because rental income has also been accounted for in the books of a/c. 17. As far as legal charges amounting to Rs. 1,22,649/- are concerned, before ld. CIT(A) the assessee had pointed out that the amount was paid to Associates Law Advisors, but it is not pointed out for which purpose the amount was paid. Therefore, both the lower revenue authorities rightly allocated this expenditure between rental income and service income. 18. As far as travel & conveyance expenses are concerned, we find that before ld. CIT(A) the assessee had pointed out that this amount was expense on day to day travelling of the officials of....
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....-tax (Appeals) - V, New Delhi, dated 31.10.2013, is wrong on facts and bad in law; 2. That the Commissioner (Appeals) erred in confirming the disallowance of expenses of Rs. 13,00,437/- out of the total expenses of Rs. 16,30,2211- for (i) Auditors Remuneration : Rs. 55,1001-, (ii) Legal and Professional Expenses : Rs. 15,40,509/-, (iii) Travel and Conveyance: Rs. 12,0601- and (iv) Rate and Taxes: Rs. 22,552/- on proportionate basis, holding that the same were incurred for the purposes of earning income by way of rent. He failed to appreciate that the said expenses were incurred for the purposes of the business of the Appellant; 3. That the Commissioner (Appeals) erred in. confirming the disallowance of depreciation of Rs. 2,88,513/- . He erred in holding that there was no justification for capitalizing the proportionate lease rent for the area used for the installation of the Plant & Machinery to the block of Plant & Machinery; 4. That the conclusions and inferences of the Assessing Officer and/or Commissioner (Appeals) are based on suspicions, conjectures, surmises and extraneous and irrelevant considerations; 5. That the reliefs prayed for may ....
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....n the issue in question is upheld. 35. In the result, assessee's appeal is partly allowed. A.Y. 2006-07 (ITA 283/Del/2014): 36. Grounds taken by the assessee in its appeal are as under: "1. That the order of the Commissioner of Income-tax (Appeals) - V, New Delhi, - dated 08.11.2013, is wrong on facts and bad in law; 2. That the Commissioner (Appeals) erred in confirming the disallowance of expenses of Rs. 1,01,401/- out of the total expenses of Rs. 1,23,4461- for (i) Auditors Remuneration: Rs. 56,1201-, (ii) Legal and Professional Expenses: Rs. 57,9861-, and (iii) Travel and Conveyance: Rs. 9,3401- on proportionate basis, holding that the same were incurred for the purposes of earning income by way of rent. -He failed to appreciate that the said expenses were incurred for the purposes of the business of the Appellant; 3. That the Commissioner (Appeals) erred in confirming the disallowance of depreciation of Rs. 1,29,8311- . He erred in holding that there was no justification for capitalizing the proportionate lease rent for the area used for installation of Plant & Machinery to the Block of Plant & Machinery; 4. That the Commissioner (Appe....