M/S. VECTRA ADVANCED ENGINEERING PRIVATE LIMITED,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 7(1)(2), BENGALURU

ITA 2025/BANG/2018Status: DisposedITAT Bangalore05 January 202212 pages
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What did the Tribunal hold?

The Tribunal held that rental income from property is taxable under 'income from house property' when separable from other assets. For bad debts, the Tribunal directed the AO to examine which debts related to accounted sales and had gone into the computation of income.

What were the facts?

The assessee treated rental income from a building as 'income from house property', but the Assessing Officer (AO) treated it as 'income from other sources'. The assessee also claimed bad debts, which were disallowed by the lower authorities.

What were the issues?

Whether rental income from a building should be treated as 'income from house property' or 'income from other sources', and whether bad debts written off are allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 22,Section 56,Section 36(1)(vii),Section 36(2)

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Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI CHANDRA POOJARI & SMT. BEENA PILLAI

For Appellant: Shri Nitish Ranjan, CA
For Respondent: Shri Sankarganesh K, JCIT (DR), Shri Nitish Ranjan, CA
Hearing: 05.01.2022Pronounced: 05.01.2022

Per Chandra Poojari, Accountant Member

This appeal by the assessee is directed against the order of the CIT(A) dated 8/3/2018 for the asst. year 2010-11. 2. The assessee raised following grounds :- “The Appellant prefers the present appeal on the below mentioned grounds which are mutually exclusive and without prejudice to one another: 1. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in confirming order passed by Ld. Assessing Officer, in treating the rental income earned from building amounting to Rs. 3,24,24,272 as 'income from other source' instead of "income from house p

The order continues below.

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