2016 (6) TMI 1127

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....has filed the appeal on the following ground: "1. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in allowing carry forward of losses u/s.71B of the I.T. Act without appreciating the fact that the Ld. CIT(A) himself has confirmed the expenses as "Pre-operative expenses" and such expense can be claimed U/s.35D of the I.T. Act only." 3. In ITA No.5193/Mum/2013, assessee has filed the appeal on the following grounds: "1. On the facts and circumstances of the case and in law, the Learned Commissioner (Appeals) erred in upholding the view of the Assessing Officer ("AO") that the Assessee's income (Loss), is to be computed under the head "Profits and Gains of Business and Profession". 2. On the facts and....

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....ad "Income from House Property" and assessee claimed that the same be carried forward u/s.71B of the Act. 4.2 Assessing Officer was of the opinion that since assessee was formed with the object of acquiring immovable property to be let out, and the said property had not been let out, assessee had not commenced business and consequently all the expenditures including interest is to be treated as preoperative expenditure. He, therefore, did not accept the assessee's contention that the income is to be computed under the head "Income from House Property" and consequently disallowed the interest as a pre-operative expenditure and thereby also disallowed the claim of assessee for carry forward of loss under the head "Income from House Property"....

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....quiring occupation certificate, since after occupation certificate a lot of work needs to be done, such as, electricity connection, water connection and so many other things. According to CIT(A), property was not lettable for the year under consideration and the entire expenses at best can be called as pre-operative expenses and cannot be allowed in the year under consideration. The ALY of the property could not be taken as nil as the property cannot be reasonably expected to let out in the year under consideration. Therefore, the submissions of assessee was rejected and addition made by Assessing Officer was upheld. In case of pre-operative expenses, if the income is held as income from business, the business of assessee was not set off in....