2017 (5) TMI 1479

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....ITA No. 3339/Del/2001 for Assessment Year (AY) 1997-1998. 2. By order dated 31st October 2013, the following questions have been framed in this appeal for AY 1997-1998 as under:- (i) Whether the ITAT was correct in law in setting aside the C.I.T. (A) order wherein it was held that the method of accounting followed by the assessee in past and accepted in earlier assessment years is such that correct income cannot be properly detected from the accounts and the Assessing Officer was justified in invoking the provisions of First Proviso to Section 145(1) of the Income Tax Act, 1961? (ii) Whether the ITAT was correct in law in holding that sale price in respect of constructed/built up properties should not be accounted for a....

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....rt of a block of assets on which depreciation is claimed. According to him, therefore the treatment of the said asset for the purpose of accounts and for the purpose of calculating the tax is different and this is an accepted practice under the income tax law. 6. The Respondent will file an affidavit clarifying the above position within two weeks with an advance copy to the counsel for the Revenue who is permitted to respond thereto before the next date of hearing. 7. As far as issue (v) is concerned the question is whether the rent receipt from DLF Centre which also includes air conditioning charges is 'Income from House property' or should be treated as 'income from other sources'? 8. Having heard learned counsel for the parties on ....

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....a part of stock-in-trade of the assessee. Its total covered area is 16649 I sp ft., out of which 130530 sp ft is let out and the balance 35961 sq ft (that is 21.6%) is occupied by the assessee for the purposes of its own business. The building is also provided with an airconditioning plant, generators and a water-treatment plant, the written down value of which taken together amounts to Rs. 29385624/-. The assessee claimed depreciation @ 10% on the written down value of the self occupied portion of the said building, which worked out to Rs. 203858736 x 0.216 x 10 = 4412527/-. It also claimed depreciation @ 25% on that portion of the written down value of the air-conditioning plant, generators and the water-treatment plant which is relatable....