2026 (4) TMI 1019

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.... 3. It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities' respective findings disallowing it's various expenditure items aggregating to Rs. 22,41,977/- in assessment order dated 23.12.2016 and upheld in the CIT(A)'s lower appellate discussion reading as under: "7. Decision 7.1 In the Assessment Order, Assessing Officer observed that the Assessee company has claimed loss of Rs. 91 J 8,761.0 under the head 'Business & Profession*, which was requested to be reduced by Rs. L54A35/- on account of lease deed charges. The Assessing Officer also noted that the Assessee company has declared house property income to the tune of Rs. 62,01,210/- (after claiming....

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....s Rs. 8,97,916/-. The Assessing Officer has himself allowed expenses to the extent of Rs. 50,0000. To this, the Appellant has submitted the copy of computation of income showing loss of Rs. 31,60,975/- and the computation of business income in which claim for the expense towards property tax and insurance amounting to Rs. L70.765A have been added back. 7.3 I find that this contention of the Appellant is correct in as much as the addition of Rs. 1,70,765/- made in the computation of income wilt reduce the claim of expense under establishment expenses. Hence, the addition of Rs. 1,70,765/- is deleted. 7.4 The Appellant has further submitted that it was in the business of investments in real estate for appreciation, sale, hol....

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.... in the business during the year under reference. The amounts of purchase or sale are very small for the building material The Appellant has also failed to show as to which expenses were incurred for maintaining the buildings arid looking after the management which yielded the rental income. Hence I am in agreement with the Assessing Officer that the expenses incurred for rental income has been diverted towards business income because there is only standard deduction available u/s 24 of the Act. in respect of income from house property. Accordingly, I hold that the Assessing Officer was fully justified in allowing certain part of business expenses and holding that remaining expenses were related to the income from house property. 7....