Income From Composite letting of Building, Machinery, Plant or furniture - (New) Section 92(2)(g) / (Old) Section 56(2)(iii)

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....nt situations, where: • A building is let out together with machinery/plant/furniture • The letting is inseparable (indivisible in agreement or practical arrangement) • A single composite consideration is received Deduction allowed [ Section 93(1)(c) ] For income derived from the letting of machinery, plant, or furniture (with or without buildings) as referred to in Section 92(2)(f) and (g), the following deductions are allowed: • Operational Expenses: Deductions are specified under section 28(1)(a), (b), (d)  for the following expenditure related to • any premium paid in respect of insurance against risk of damage or destruction thereo....

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....emises used for earning such income. (iii) Section 31 - Repairs and insurance of machinery, plant and furniture Allows deduction for: • Current repairs to machinery, plant or furniture. • Insurance premium against risk of damage or destruction of such assets. (iv) Section 32(1) - Depreciation Depreciation on: • Machinery, • Plant, • Furniture, • Buildings (where relevant), used for earning income under Section 56(2)(ii)/(iii) is allowable. (v) Section 32(2) - Unabsorbed Depreciation Where applicable, unabsorbed depreciation may also be considered in accordance with the incorporated provision. (vi) Sec....

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....e separately assessed under section 56 as income from other sources. The Court's decision was based on the findings of the Tribunal, which established that there was no inseparable letting of machinery, plant, or furniture along with the building, warranting the income to be taxed under section 22. [ Indian City Properties Limited Versus Commissioner Of Income-Tax, West Bengal I 1977 (3) TMI 18 - CALCUTTA High Court ] • Where premises are let together with fixtures, fittings and air-conditioning plants as one composite and inseparable demise, the rent is assessed under section 12(4) of the Income-tax Act, 1922, because the building rent cannot be split from the rent attributable to the plant and related items. [ Chitpo....