TaxTMI 
TaxTMI 
2017 (8) TMI 917
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....action of A.O. that interest paid to citi bank on housing loan account no. 2211395 to the extent of Rs. 60,000/- is not allowable as deduction. 2. On the facts, in law and in the circumstances of the case, whether the learned CIT (A) was justified in confirming the action of A.O. that interest paid to citi bank on housing loan account no. 219658 to the extent of Rs. 7,74,887/- is not allowable as deduction. 3. On the facts, in law and in the circumstances of the case whether the learned CIT(A) was justified in confirming the action of the A.O. disallowing a sum of Rs. 2,75,000/- out of salary, Repairs and Maintenance and Water charges. 4. On the facts of the case, in law and in the circumstances of the case whethe....
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....Maintenance and water charges Rs.2,75,711/- 5. Disallowance out of interest paid by calculating Notional interest on business advances paid. Rs.8,24,227/- 6. Reduction of depreciation while working out Income from business Rs.2,74,285/- 7. Granting credit for TDS for Rs. 5,50,990/- as Against credit claimed for Rs. 6,42,994/- Less by 92,004/- 8. Non grant of deduction of amount paid as Society charges while determining ALV of the Flat given on rent Rs.2,11,109/- 3. Aggrieved by the assessment order, the assessee preferred appeal before CIT(A). Before CIT(A), the assessee has filed elaborate written submissions and challenged additions made by the AO towards disallowance of municipal taxes, interest ....
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....ts account. Therefore, the AO was incorrect in disallowing interest paid on loan merely for the reason that the loan is standing in different name but facts remains that the assessee has borrowed the loan in the name of M/s Jessica Impex, which is a sister concern and these facts are clearly mentioned in loan sanction letter. The assessee further contended that even while allowing interest on loan for first housing loan, the AO has adopted an incorrect figure which is different from interest paid. The certificate issued by the bank clearly shows payment of interest of Rs. 3,99,896, whereas the AO has considered interest payment of Rs. 3,39,896 which resulted in difference of Rs. 60,000. 5. Having heard both the sides and considered mater....
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....nt from the fact that the certificate issued by the bank clearly establishes payment of interest of Rs. 3,99,896. Therefore, we direct the AO to allow interest of Rs. 3,99,896 as claimed by the assessee as against Rs. 3,39,896. 6. The next issue that came up for our consideration is disallowance of expenditure of Rs. 2,75,711 out of staff salary, repairs and maintenance and water charges. The AO has worked out expenditure debited in the P&L Account on the basis of gross receipts and disallowed a sum of Rs. 2,75,711 proportionately on the basis of gross receipts from rent and gross receipts from business. The assessee has claimed rental income under the head "Income from business" and claimed expenses against such income in the P&L Accoun....
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....to be reconsidered by the AO in the light of the explanation of the assessee. Hence, we set aside the issue to the file of the AO and direct him to consider the explanation of the assessee with regard to the allocation of expenditure towards rental income and business receipts. 7. The next issue that came up for our consideration is disallowance of notional interest on loans and advances. During the course of assessment proceedings, the AO observed that the assessee has borrowed unsecured loans on which paid interest, whereas assessee has advanced various loans but failed to charge any interest on such loans. Therefore, the AO called upon the assessee to explain why interest on loans shall not be disallowed. In response to show cause not....
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....e funds and loans and advances given to third parties. The CIT(A), after considering relevant facts has rightly upheld additions made by the AO. We do not find any infirmity in the order of CIT(A); hence, we are inclined to uphold the order of CIT(A) and reject the ground raised by the assessee. 9. The next issue that came up for our consideration is disallowance of depreciation on furniture & fixture on the basis of turnover of the business and "Income from house property". The AO has disallowed depreciation on furniture & fixtures proportionately on the basis of turnover. The AO disallowed depreciation on furniture & fixtures which are relatable to receipts from "Income from house property". The assessee claims that the furniture & fix....