TaxTMI 
TaxTMI 
2023 (3) TMI 966
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....eby pass a consolidated order in both these appeals by taking ITA No. 1847/Mum/2021 as a lead case. ITA No. 1847/Mum/2021 2. The solitary issue involved in these appeals are that the ld.CIT(A) has erred in deleting the disallowance of expenses amounting to Rs.1,77,37,817/- and Rs.1,90,93,072/- for A.Ys. 2015-16 and 2016-17 respectively, which are calculated on the proportionate basis without considering that the income from leasing of units is offered under 'income from house property' on which standard deduction of 30% u/s.24(a) of the Act has been claimed, where the impugned expenses are alleged to be related to both the licensing unit as well as the business income which are not to be wholly allowable against the business income. ....
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....d added the same to the assessee's total income. 4. The assessee was in appeal before the ld. CIT(A), challenging the assessment order passed by the A.O. 5. The ld. CIT(A) dismissed the ground of disallowance of deprecation, amounting to Rs.11,71,074/- for the reason that the assessee was not receiving any rent separately for furniture's and fixtures and that the said furniture's and fixtures on which depreciation was claimed is given on rent along with the premises rented out by the assessee. The ld. CIT(A) also held that the income received from licensing is offered by the assessee under the head 'house property', for which the only expenditure permissible was 'interest on housing loan' and 30% deduction on account of 'repairs and m....
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....activity. The ld. DR stated that the A.O. has rightly disallowed the expenses on a proportionate basis, pertaining to income from licensing activity. The ld. DR relied on the order of the A.O. 9. The learned Authorized Representative (ld. AR for short) for the assessee, on the other hand, controverted the same and stated that the assessee has made suo moto disallowance of Rs.36,55,786/- on maintenance. The ld. AR further stated that the expenses pertaining to brokerage, security and telephone expenses are exclusively 'business expenses' which are to be fully allowed and the other expenditure pertaining to repair and maintenance, etc. has been allocated by the assessee and only expenses related to the units owned by the assessee or leased....
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.... pertaining to telephone is said to have been expended wholly by the assessee for its office premises at Olympia building and no bifurcation was required for the impugned expenses. The assessee has submitted that the water charges amounting to Rs.26,85,638/- pertains to the sold units and that the same are debited to the respective assets account. The assessee has stated during the assessment proceeding that the assessee manages the entire commercial buildings for which the assessee collects maintenance charge inclusive of property tax from the respective unit owners. For the leased out premises, the assessee collects maintenance and property tax from the concerned licensee. The assessee further stated that the maintenance for the said unit....
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....rty tax and other expenses pertaining to the said unit, the same was not considered by the A.O. The A.O. had disallowed the total expenses by calculating the total area of the project from the leased area and by reducing the suo moto disallowance made by the assessee and had worked out the disallowance to Rs.1,77,37,817/-. The ld. CIT(A), on the other hand, had deleted the said disallowance without bifurcating the expenses pertaining to the leased premises and those retained by the assessee without having licensed/sold units. The ld. CIT(A) has also held that the expenses relating to maintenance such as housekeeping, etc. are common expenses calculated for both the units leased and owned by the assessee and had stated that the same could no....