Case Number: ITA 5179/DEL/2019
Appellant: J.K.V.B. Properties Pvt. Ltd., New Delhi
Respondent: DCIT Circle-13(2), New Delhi
Assessment Year: 2014-15
Order Type: Final Tribunal Order
Date of Order: September 30, 2021
Case Filed on: June 6, 2019
Pronounced on: September 30, 2021
The appeal by J.K.V.B. Properties challenges the order dated March 28, 2019, passed by the Commissioner of Income Tax (Appeals)-5, New Delhi, concerning the Assessment Year 2014-15. The primary issues involve corrections to the income from house property and the classification of interest income.
The Assessing Officer had adjusted the income from house property by adding back Rs.43,98,611 to the total income due to discrepancies in rent calculations and misapplication of brought forward business losses. The CIT(A) provided partial relief, which the appellant contested, particularly over deductions for expenses like electricity, maintenance, and insurance linked directly to the property income generation.
The tribunal examined the appeals against the CIT(A)’s decision, especially focusing on the justification for expenses related to the property and the classification of various interest incomes as ‘income from other sources.’ It highlighted the necessity to re-evaluate some of the denied deductions and upheld others, emphasizing strict adherence to tax law for classification of income types and the utilization of deductions.
This case underscores the complexity of tax deductions related to rental income and the precise conditions under which business losses can be carried forward. The tribunal’s decisions serve as a critical reference for real estate businesses on proper income reporting and the categorization of income for tax purposes.
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