Held that\u00a0 the assessee, in addition to earning rental income, also received maintenance charges for the portion let out, which were included in \u201cBusiness income\u201d and these had also been assessed accordingly, and that therefore, even the expenses pertaining to portion of the property let out should not be disallowed because the receipts in relation to maintenance charges had been taxed as \u201cBusiness income\u201d. The fact of receipts of maintenance charges arising from the rented portion having been clubbed with the \u201cBusiness income\u201d was not borne out from the record. It would be just and fair if the order was set aside and the matter remitted to the Assessing Officer to allocate item-wise expenses to the requisite heads. The portion of the expenses pertaining exclusively to the business activity should be considered as business expenses and allowed as deduction against the income under the head \u201cProfits and gains of business or profession\u201d. Expenses pertaining exclusively to the renting activity should be considered only under the head \u201cIncome from house property\u201d. The remaining common expenses should be allocated between the two heads on some rational basis, such as, area used for both the activities or revenue from both the activities on gross basis, etc. The Assessing Officer was also to ascertain if the receipts of maintenance charges from the let out portion had been considered as \u201cBusiness income\u201d. If so, the nature of expenses against which the maintenance charges were received was to be looked into. The nature of expenses, forming part of the expenses relating to the renting activity, against which maintenance had been recovered from the tenants, should be considered under the head \u201cBusiness\u201d and others to be disallowed as pertaining to the income falling under the head \u201cIncome from house property\u201d.(AY. 2013-14 to 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 28(i) : Business income-Income from house property-Business expenditure-Renting of parking spaces, table spaces and games collection-Renting activity against which maintenance recovered from tenants to be considered under business and balance to be disallowed as pertaining to income from house property-Matter remanded. [S. 22, 24, 37(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44187","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-buH","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44187"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44187\/revisions"}],"predecessor-version":[{"id":44188,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44187\/revisions\/44188"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}