TaxTMI 
TaxTMI 
2018 (6) TMI 606
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....roperty' as against 'Business Income' offered by the Appellant without appreciating the facts and circumstances of the case. (b) The Ld. CIT(A) failed to appreciate that the Appellant is in the business of letting out of the properties. Hence, the income received from letting out of the properties is to be assessed as 'Business Income' only. Thus, the Ld. CIT(A) is not justified in upholding the action of the Ld. A. O. in treating the amount of Rs. 25,84,281/- received for letting out of the House Property as 'Income from House Property' and the same may be deleted. (c) Without prejudice to the above the Ld. CIT(A) failed to appreciate that the actual rent received by the Appellant amounting to Rs. 25,84,281/- is taxable under section 23(1 )(b) and not under section 23(l)(a) as the same is higher than the municipal retable value. 3. Disallowing the entire expenses debited to the profit and loss account (a) The Ld. CIT(A) erred in confirming the action of the Ld. A. O. in disallowing the expenses debited to the profit & loss account without appreciating the fact that the same was incurred for earning of the income credited to the profit & loss acc....
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....llant prays that the addition of Rs. 8,08,000/- under section 68 of the Act is not at all justified and the same may be deleted. 7. The Appellant denies any liability to pay interest under section 234B and 234C. Hence, the same is not leviable. Apropos ground relating to treatment of business income as income from house property: 3. Brief facts on this issue are as under: The Assessing Officer observed that the assessee is earning income by letting out house properties on rent and during the previous year total credits to the Profit and Loss were shown at Rs. 25,84,281/-. After claiming book profit tax of Rs. 4,61,392/- was shown. The assessee has earned income in the form of rent by letting out of house properties and the entire income credited to the P&L account is in the form of rent. The assessee offered the above income under the head 'Business Income' after claiming host of expenses. The Assessing Officer asked the assessee to show cause as to why the rent income should not be assessed under the head 'Income from House Properties', but the assessee did not filed explanation in this regard. As per the provisions of sec. 22 of the Act, the Assessing Office....
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....earing for the Revenue is to the effect that the rent should be the main source of income or the ITA No.3326//Mum/2017 Knight Raj Properties P. Ltd purpose for which the company is incorporated should be to earn income from rent, so as to make the rental income to be the income taxable under the head "Profits and gains of business or profession". It is an admitted fact in the instant case that the assessee company has only one business and that is of leasing its property and earning rent therefrom. Thus, even on the factual aspect, we do not find any substance in what has been submitted by the learned counsel appearing for the Revenue. 11. The judgment relied upon by the learned counsel appearing for the assessee squarely covers the facts of the case involved in the appeals. The business of the company is to lease its property and to earn rent and therefore, the income so earned should be treated as its business income. 12. In view of the law laid down by this court in the case of Chennai Properties (supra) and looking at the facts of these appeals, in our opinion, the High Court was not correct while deciding that the income of the assessee should be treated as income from h....
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....debited the management consultancy expenses of Rs. 8,35,000/-. The Assessing Officer asked the assessee why the same should not be disallowed u/s. 40(a)(ia) of the Act. In absence of assessee's response, the Assessing Officer disallowed the expenditure. 10. Upon the assessee's appeal, the ld. Commissioner of Income Tax (Appeals) confirmed the addition. 11. Against this order, the assessee is in appeal before us. 12. We have heard both the counsel and perused the records. The ld. Counsel of the assessee submitted that the above payment is in fact been made by its sister concern M/s. Knight King Inn's Pvt. Ltd. on behalf of the assessee and TDS was duly deducted. In this regard, the ld. Counsel of the assessee submitted that the issue may be remitted to the file of the Assessing Officer where the assessee would submit the necessary details. 13. Upon careful consideration, we deem it appropriate to remit the issue to the file of the Assessing Officer. The Assessing Officer is directed to consider the issue afresh in light of the additional evidence now being sought to be submitted by the ld. Counsel of the assessee. Needless to add, the assessee should be granted adequate opportun....
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....;s Pvt. Ltd. without appreciating that no such amount of loan is appearing in the balance sheet of the Appellant. The Ld.A.O., further, went on making addition amounting to Rs. 8,08,000/- on account of unexplained cash credit. The Applicant submits that it has not been provided the reasonable opportunity to file detailed explanation. 4. The Applicant submits that the issues mentioned at serial no. 3, 4 and 5 are interrelated to each other. The Applicant submits that during the year under consideration the Director of the Appellant, Mr. Naresh Rajwani received a sum of Rs. 4,60,000/- and Rs. 3,40,000/- from his aunts Smt. Kamla Serai and Smt. Durupati Serai respectively. The said money was specifically utilized for the purpose of business of the Applicant since there was financial need. The affidavits confirming the same are being provided in the paper book II at pages 128 to 136. 5. The Appellant, further, submits that the same funds were deposited in Dena Bank Account on 22.04.2009. The details of Bank statement showing deposits is enclosed at page 23 of the paper book I. The Applicant submits that the said affidavits are going to the root of the issue pertaining to the cash d....