TaxTMI 
TaxTMI 
2025 (12) TMI 1894
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....The assessee has filed return of income showing total income of Rs. 48,14,110/- in the status of Co-operative Society, including the income of Rs 66,76,051/- under the head income from house property after claiming sub-letting charges of Rs. 7,92,084/- and standard deduction @30% of annual value u/s 24(a) of the IT Act. The Assessing Officer, (A.O) in the assessment order passed u/s 14(3) of the Act, assessed the income shown under the head house property as income from other sources disallowing 30% of standard deduction claimed under house property of Rs 87,83,783/- and further disallowing sub-letting charges of Rs.7,92,084/-. The A.O has also disallowed interest on borrowed capital of Rs.1,38,19,443/- claimed on construction of the proper....
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....on disallowances of Rs 2,16,000/- held that storage charges claimed u/s 80P(2)(e) is in the nature of leave & license fee and is not allowable as the income has not been offered under the head business. The assessee filed appeal against the order of Ld. CIT(A) raising following grounds: "1. The learned Commissioner of Income Tax (Appeals) erred in holding that rental income of Rs.3,19,40,790/- earned by the appellant from letting of immovable properties, on leave and license basis, owned by it is chargeable to tax under the head "Income from Other Sources" and not under the head "Income from House Property". 2. The learned Commissioner of Income Tax (Appeals) erred in holding that appellant is not entitled to standard dedu....
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....come and the same has been accepted by the department. The Ld AR further submitted that there is no change in the nature of property let out on leave and license and majority of the tenants are also continuing. The Ld AR further submitted that the issue is covered in favour of assessee in its own case by the decision of Hon'ble Tribunal for in ITA No.6071/Mum/2019 for A.Y 2013-14, dated 14.07.2021, where the rental income was shown under the head house property and the A.O after accepting the income under house property, had disallowed the sub-letting charges of Rs.7,78,420/- paid to Maharashtra Industrial Corporation and Hon'ble Tribunal has deleted the disallowances made by the A.O. 8. The Ld. DR on the other hand relied on the order o....
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....s 43,22,500/-, M/s Inter Gold (India) Pvt. Ltd of Rs 35,66,000/-, M/s MBMG Diamonds Ltd of Rs 36,40,000/- for letting out the area in administrative building. The Ld. CIT(A) also after analysing the financial statement held that assessee in income and expenditure statement has shown the rental income under income from other sources, without going into substance of the nature of receipt. The assessee has been showing income from the letting out the very same property under the head income from house property and the same has been accepted in all the preceding years. In fact, for A.Y 2013 14, where A.O while accepting the income under head house property, has not allowed of sub-leasing of Rs.7,92,084/-paid to MIDC, the Hon'ble Tribunal in ITA....
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....me in case assessee offers the income under the head other sources after verification. As we have already held that the income is to be assessed under the head income from house property, the assessee is eligible for deduction of interest u/s.24(b) of the Act. The assessee has been allowed the claim of interest u/s 24(b) in the preceding years, A.O is accordingly directed to allow the interest on the borrowed capital after due verification. Ground 4 is accordingly allowed. 14. Ground No. 5 is relating to confirming the disallowances of expenses of Rs. 31,78,068/- relating to income from testing charges made by the A.O. 15. The Ld.AR at the outset, has submitted that the above expenditure has not been verified and therefore this issue ....
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....le for deduction u/s.80P(2)(d). The Ld.AR in this respect relied on the case of ITO vs. MTNL Mumbai Co-operative Credit Society Limited ITA 5427/Mum/2024 for assessment year 2017 18 to 2020-21. The Ld.DR relied on the order of Ld.CIT(A). 19. We have heard rival submission and perused the material available on record. The A.O has disallowed the claim of storage charges u/s. 80P(2)(e) as interest from co-operative bank and not allowable u/s. 80P(2)(d). The Ld. CIT(A) held it not allowable as storage charges has been received as fee from leave and licenses from M/s Hiralal Gulabchand Pvt Ltd. We find that assessee has claimed storage charges of Rs 2,16,000/- from members and claimed it u/s 80P(2)(e), but neither A.O nor Ld. CIT(A) has exami....