2016 (6) TMI 1348

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....xpenses amounting to Rs. 36,97,995/-. These expenses included Repairs and maintenance (office and others) at Rs. 5,62,797/-. The AO observed that the assessee had claimed 30% deduction on account of 'Income from house property' and, hence, repairs and maintenance expenses were not allowable. He, therefore, made addition of Rs. 5,62,797/-. The ld. CIT(A) noticed the details of repairs and maintenance expenses amounting to Rs. 5,62,797/- which have been reproduced on page 3 of the impugned order. A chart has been drawn on page 7 of the ld. CIT(A)'s order in which repairs and maintenance expenses have been segregated in respect of four properties with further break-up about the nature of expenses. The ld. CIT(A) upheld the addition to the exte....

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....and restore the matter to the file of AO for restricting the deduction qua the properties used for the business purpose. The AO is directed to first identify the properties let out fully or partly and, then, disallow the repairs and maintenance expenses relatable to such let out properties. Needless to say, the assessee will be allowed a reasonable opportunity of being heard. 5. Ground No.2 is against the sustenance of disallowance at Rs. 6,17,549/- out of Administrative expenses. The assessee claimed administrative expenses comprising of Advertisement expenses, Legal & professional, Printing and stationery and Travelling expenses, etc., amounting to Rs. 36,97,995/-. The AO observed that the business income of the assessee from 'Fun and ....

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....ciation on Games and toy machine at Rs. 2,92,170/-. 50% of the remaining depreciation was disallowed. The ld. CIT(A) restricted the disallowance to 25%. The assessee is aggrieved against the sustenance of remaining amount of depreciation. 8. After considering the rival submissions and perusing the relevant material on record, it is noted from the impugned order that the assessee claimed depreciation under the `Building' block in respect of three buildings, which were used for the business purpose. It shows that depreciation on the let out building(s) was not claimed. As regards depreciation on other assets, I find that the AO has here again given similar reasoning for restricting the depreciation by observing that the business activity w....