2014 (4) TMI 1218

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....d in law, the Ld. CIT(A) erred in holding that rental expenses of Rs. 2,20,33,795/- and depreciation of Rs. 18,48,995/- on building and Rs. 28,65,379/- should be allowed since the income has been held to be taxable under Business Income". 2.Assessee-company,engaged in the business of Services, leasing and business Centre facilities, Maintenance & Running of Guest House,filed its return of income on 31.10.2007 declaring total income of Rs. Nil.Effective Ground of appeal is about holding rental income as business income. During the assessment proceedings AO found that the assessee was engaged in the business of leasing,property-management-services and business centre facilities,that it had shown lease income on account of lease rent of its....

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....rbed depreciation of Rs. 1,66,97,023/-. 3.Against the order of the AO,assessee-company preferred an appeal before the First Appeal Authority(FAA).After considering the submissions of the assessee and the assessment order he held as under : 2.3 This issue is covered in favour of the appellant, by the earlier orders of CIT(A) as well as by the Mumbai ITAT, the findings of my predecessor, CIT(A) in Assessment Year 2006-07 on this issue are as under: "In the appellate proceedings, the Authorised Representative of the appellant brought to my knowledge the decision of ITAT Mumbai Bench in the case of Assessment year 2001- 02 and also in Assessment Year 1997-98 dated 29.02.2008 in ITA No. 2328/Mum/2004 herein ITAT allowed the appeal....