TaxTMI 
TaxTMI 
2018 (11) TMI 1004
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....ome Tax- 25(2), Mumbai ("AO") in reopening the assessment under section 147 of the Income Tax Act, 1961 ("the Act"). 2. He failed to appreciate and ought to have held that that all the relevant facts were disclosed in the return of income and the reopening was unjustified, unwarranted and bad-in-law. 3. The Appellant, therefore, prays that the reopening of assessment u/s. 147 of the Act be held to be ab-initio and/or otherwise void and bad in law. GROUND 11 : 1. The CIT (A) erred in confirming the action of the AO of treating income received in respect of the Amenities Agreement with the lessee of the premises under the head 'Income from Other Sources' instead of 'Income from House Property', as claimed by the Ap....
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....ected to delete the said disallowance of ? 6,06,316/-. GROUND V; 1. On the facts and circumstances of the case and in law, The AO erred in computing interest charged u/s. 234B/234C of the Act." 2. The brief facts of the case are that the assessee is a partnership firm engaged in the business of running cinema theatres, filed its return of income for AY 2008-09 on 01-09-2008 declaring total income of Rs. 5,67,38,760. The return was processed u/s 143(1) of the I.T. ACT, 1961. Thereafter, the assessment has been reopened u/s 147 for the reasons recorded, as per which, income chargeable to tax to the extent of Rs. 1.91 crores have escapsed income within the meaning of section 147 of the I.T. Act, 1961. In response to the notice, the asse....
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....Further, the AO also disallowed loss claimed by the assessee under the head 'Income from business or profession' on the ground that the assessee has not carried out any business activity in the year under consideration, except deriving income from letting out of premises which has been assessed under the head 'Income from house property' and 'Income from other sources'. 3. Aggrieved by the assessment order, assessee preferred appeal before CIT(A). The CIT(A), by following his predecessor's order for earlier assessment year, which was supported by the order of ITAT in assessee's own case, upheld the addition made by the AO towards re-working of amenity charges received, under the head 'Income from other sources'. Aggrieved by the order of L....
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....nce. It is the claim of the assessee that amenity charges should be treated as advance, as it runs through the period of lease. Therefore for the year under consideration, the amenity charges should be treated as advance. 7. We do not subscribe to this claim of the Id. Counsel. The amenity charges have been received by the assessee as per the agreement and the same has to be taxed under the head Income from other sources' as held hereinabove. The alternate claim of the assessee is accordingly dismissed." 6. In this view of the matter and consistent with the view taken by the coordinate bench, we have to hold that the Ld.CIT(A) was right in confirming the action of the AO in assessing amenity charges under the head 'Income from other....
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....he assessee did not earn any revenue from business operations, and therefore, the question of incurring expenses does not arise. The AO has taken support from the assessment order for AY 2007-08 to come to the conclusion that a similar disallowance has been made for AY 2007-08. We find that the assessee has claimed total expenditure of Rs. 5,72,472 under the head 'administrative expenses' including legal and professional fees and depreciation on assets. On perusal of details of expenses claimed in the P&L account, we find that these expenses are routine nominal expenses incurred to maintain corporate status of the assessee. We further observe that though the AO has taken support from the order for AY 2007-08, on perusal of the assessment or....