TaxTMI 
TaxTMI 
2026 (3) TMI 1187
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....issioner of Income Tax Appeals (hereinafter referred to as 'CIT (A)'), grossly erred in sustaining of Rs. 71,59,544/-on account of Power & Fuel Expenses. In spite grounds of appeal and the records are available with him which is uncalled for, based on surmises and conjectures and bad in law. 2. That on the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax Appeals (hereinafter referred to as 'CIT (A)'), grossly erred in sustaining the 24.05% of building repair expenses in respect of JHV(Cinema) and 1.38% of building repair expenses in respect of Ramada (Hotel). In spite grounds of appeal and the records are available with him which is uncalled for, based on surmises and conjectures and bad in law. 3. Because on the Facts and Circumstances of the case order passed by Ld. A.O. and CIT(A) is arbitrary in nature, against the principle of natural justice & equity and also without giving proper opportunity of being heard. 4. The Appellant hereby prays for any consequential relief arising out of the above appeal and further prays for any addition, modification, deletion and alteration in the ground of appeal for th....
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....xpenditure statement wherein it is seen that for the shops on rent in JHV Mall and Hotel power charges received from the tenants amount to Rs. 64,77,957/- as against the total expenditure claimed for the entire property i.e., 63,48,39,786/-. Accordingly, Ld. AR has argued that amount more than the expenditure incurred in respect of rented shops has been recovered from the respective tenants and duly reflected in the income and, therefore, no further addition on this account ought to have been made. It has further been pointed out by the Ld. AR that the issue is squarely covered by the order of Hon'ble Co-ordinate Bench in assessee's own case for A.Y. 2009-10 wherein relief to the assessee on this ground has been allowed in view of the facts as well as after noting that the same issue was considered by the Ld. AO in the course of assessment proceedings for A.Y. 2018-19 and the disallowance was proposed to be made vide draft assessment order dated 12.04.2021. However, the contention of the assessee was accepted while passing the regular assessment order u/s 143(3) dated 17.04.2021, copies of which have also been placed on record. (i) On the other hand, Ld. DR has strongly re....
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.... Assessment Year deserves to be deleted." In view of the facts and circumstances, expenditure by the Ld. AR as well as the decision of the co-ordinate Bench, we, hereby, delete the addition made on account of disallowance out of the power and fuel expenditure out of Rs. 71,59,544/. (ii) Ground No. 2 : Disallowance out of completing repair expanses in respect of the JHV @ 25.04% in respect of Ramada Hotel @1.38% at total Rs. Rs. 1,71,25,129/- Brief facts are that the Ld. AO was sought to disallow proportionate expenses on the rented portion on the ground that while offering rental income, as income from house property, the assessee had reduced the rental income from total income shown from business and profession. It had not reduced any expenses from total expenses. It was noted by the Ld. AO that all the rented shops are situated inside the mall and hotel and, therefore, we proposed to disallow the repair and maintenance expenses on building furniture and others on proportionate basis. Accordingly, disallowance of Rs. 43,54,920/- has been walked out of the total expenditure of Rs. 1,71,25,129/- @ 25.43%. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). Howeve....
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....sessee is allowable as business expenditure. It is further submitted that hotel JHV Ramada and JHV Mall both are running in separate premises. 10. The dispute before the A.O. regarding building repair and maintenance expenses against rental income. The assessee had provided details of building repair and maintenance unit wise and corresponding business income as under:- Particulars JHV Mall & Multiplex Ramada Plaza (Hotel) Building Repair and maintenance Expense 10,61,415/- 1,52,13,531/- A. Revenue from Shop Rent. 4,33,71,916/ - 48,10,825/- B. Revenue from CAM Charges 1,36,73,547/- 16,55,197/- C. Revenue from Food court 47,19,642/- D. Revenue from Homemaker (Retail shop) 5,69,38,597/- 'E. Theater Income 6,03,55,160/- F. Sale of Food and Beverage 2,16,87,542/- 7,38,53,902/- G. Others Sales 44,88,729/- 60,40,406/- H. Hotel Room Sales 16,73,44,813/- 1. Total Revenue (A to H above) 20,52,35,133/- 25,37,05,143/- 11. From the above chart it depicts that only Rs. 10,61,415/- for building maintenance has been incurred during the year under con....