TaxTMI 
TaxTMI 
TaxTMI 
2016 (11) TMI 1673
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....mounting to Rs. 132.28 lakhs, (c) Addition of notional interest to the rental income amounting to Rs. 49.05 lakhs and (d) Assessment of hire charges amounting to Rs. 65.74 lakhs under the head income from house property. 3. `The assessee is an individual and engaged in the business of construction activities. The assessee has developed a project in joint venture (JV) with M/s Godrej Properties and Investment Ltd. for development of a property located at Kurla. The assessee had claimed certain expenses as revenue expenses but the A.O. treated the same as expenses related to joint venture project and accordingly he capitalized a portion of purchase expenses and interest expenses by including the same in the work-in-progress (WIP). The ld. ....
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....he view taken by the ld. CIT(A). 6. We have gone through the order passed by the co-ordinate Bench of this Tribunal and noticed that identical issue was considered by the Tribunal in para 14 of its order. We further noticed that the Tribunal upheld the view taken by the ld. CIT(A) in para 14.4 of its order. Consistent with the view taken therein, we uphold the order passed by the ld. CIT(A) on this issue. 7. The next issue relates to the disallowance of part of interest expenditure by treating the same as relating to WIP. The A.O., as in the case of purchase expenses, disallowed part of interest expenditure claimed by the assessee by allocating the same to the on-going project. Before the ld. CIT(A), the assessee submitted that the intere....
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....pheld the view taken by the ld. CIT(A) in para 6.3 of its order. Consistent with the view taken by the Tribunal, we uphold the order passed by the ld. CIT(A) on this issue. 10. The next issue relates to the addition of notional interest on interest free deposits received from licencees of properties. The assessee has disclosed the monthly rental of Rs. 3.27 crores and hire charges for amenities of Rs. 2.19 crores. The A.O. also noticed that the assessee has received interest free deposits of Rs. 4.29 crores as rent deposits and Rs. 2.21 crores as amenities deposit. The A.O. took a view that notional interest on interest free deposit is required to be considered as part of rental income in order to arrive at a fair market value of rent u/s ....
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....ordingly directed the AO to assess the hire charges under the head Income from House Property. 14. At the time of hearing, it was brought to our notice that identical issue was considered by the Tribunal in assessee's own case for A.Y. 2009-10 (referred supra) and the co-ordinate Bench of this Tribunal upheld the view taken by the ld. CIT(A) in A.Y. 2009-10. 15. We have gone through the order passed by the co-ordinate Bench of this Tribunal for A.Y. 2009-10 in ITA No. 4960/Mum/2010 dated 24th June, 2016 and noticed that an identical issue was discussed by the Tribunal in para No. 8 of its order. We have further noticed that the tribunal has rendered this decision in para 8.3 of its order wherein it was observed that the amenities provided....