2025 (11) TMI 1758

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....016 for Assessment Year 2013-14 and 2014-15, on the following grounds of appeal: - ITA No.5697/Del/2024 for A.Y. 2013-14 1. Whether the Ld. CIT(A) is justified in law and in the fact & circumstances of the case in deleting the disallowances on account of depreciation on assets other than building amounting to Rs. 1,77,28,541/- made by the Assessing Officer treating income from leasing as income from house property. 2. Whether the Ld. CIT(A) is justified in law and in the fact & circumstances of the case in deleting the additions/disallowances made by the Assessing Officer by treating the rental income earned by the assessee from commercial properties as Income under the head House Property instead of Income from b....

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....justified in law and in fact & circumstances of the case in deleting the disallowances on account of depreciation on assets other than building amounting to Rs. 1,53,42,452/- made by the Assessing Officer treating income from leasing as income from house property. 4. The appellant craves leave to add, alter or amend any/ all of the grounds of appeal before or during the course of the hearing of the appeal. 2. The brief facts of the case are that the assessee is engaged in the business of promotion, construction, development and sale of integrated townships, residential and commercial buildings, flats, IT parks, Hotels SEZs etc. The return of income was filed on 27.09.2013 declaring income of Rs. 81,50,394/- for the year under co....

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....rties were held as commercial assets and same was exploited for business purpose. 19. Thus, we are of the considered view that Ld. Tax Authorities have fallen in error in changing the head of income from 'Business income' to 'Rental income' and accordingly the disallowance of expenditure and denial of depreciation on this account is not sustainable. The grounds raised in both the appeals are allowed. Consequently, the appeals are allowed." 5. Aggrieved revenue is in appeals before us. 6. We have heard the rival contentions and perused the material available on record. We find that the issues are covered in favour of the assessee vide ITAT order dated 27.05.2024. The CIT(A) in his order has relied upon the orde....