TaxTMI 
TaxTMI 
2017 (3) TMI 1256
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....A. No.732/DEL/2011 for the assessment year 2003-04, claiming following substantial questions of law:- (i) "Whether under the facts and circumstances of the case, the ITAT was justified in concurring with the order of authorities below in making addition of Rs. 17,07,358/- in respect of valuation of depleted/unusable/unsalable/rat bitten stock in arbitrary manner? (ii) Whether on the facts and circumstances of the case, the ITAT was justified in concurring with the order of authorities below in denying the claim of deduction under Section 24 of the Income Tax Act, 1961 out of rental income of Rs. 78,000/- by treating the same as income from other sources by ignoring the facts and circumstances and provisions of law of the present case?....
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....58/- on account of value of closing stock not shown by the assessee firm. The assessee claimed rental income as in the previous years on account of leasing out the factory to its sister concern. The Assessing Officer held that the income was assessed under the head "other sources" as in the past and deduction under Section 24(1) of the Act was not allowed. The assessee filed an appeal before the Income Tax (Appeals) [CIT(A)]. Vide order dated 02.12.2010, Annexure A.2, the CIT(A) dismissed the appeal and upheld the order passed by the Assessing Officer. The assessee filed further appeal before the Tribunal. Vide order dated 03.11.2015, Annexure A.3, the Tribunal partly allowed the appeal. 3. We have heard learned counsel for the parties. ....
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....proved by the factum that entire fixed assets also stand disposed off during the year. Had the firm been earning profits on its stock why would anyone close of its business i.e. the purpose for which partnership firm was formed. The Assessing Officer had not appreciated the fact that zips which were lying since 1994 which were meant for utilization in export shows how would they remain intact for so many years and were rusted/worn off and could not have saleable market in India. Taking into account all the above facts, and also the fact that the assessee having written off/rejected worn off, stock after organizing clearance sales, having produced the samples of stock before him and offered for inspection for such worn off stock, the learned....
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....sessed under the head income from other sources as was in the past. The learned CIT(A), too, confirmed the action of the Assessing Officer. We find that the learned CIT(A) has come to the conclusion by holding that since the rental income was held to be assessed under the head 'income from other sources' deduction under section 24(1) was not allowable. 16. After considering the rival submissions, we find it relevant to reproduce Section 22 of Chapter IV of the Income Tax Act which deals with computation of income from house property reads as under: Income from house property. 22. The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such port....