LAKE VIEW DEVELOPERS,MUMBAI vs. ADDL CIT RG 12(3), MUMBAI

ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the assessee. The relevant assessment year is 2010-11. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-23, Mumbai and arises out of the assessment completed u/s 143(3) of the Income Tax Act 1961, (the ‘Act’).

M/s Lake View Developers

filed by the assessee reads as under: 1. a. The Ld. CIT(A) erred in confirming disallowance of depreciation of Rs.36,76,166/- on furniture and fixtures on leased assets. b. The Ld. CIT(A) erred in stating that depreciation on furniture and fixtures on leased assets is not allowable as income from renting is declared and assessed under the head income from house property. c. Alternatively, appellant prays that proportionate rent be assessed under the head Income from other sources and depreciation on furniture on leased assets should be allowed u/s 57.

3. Briefly stated, the facts of the case are that the assesssee had claimed depreciation of Rs.36,76,166/- on furniture and fixture leased out. The Assessing Officer (AO) observed that as the receipt from the leasing activities has been offered to tax under the head ‘Income from House Property’, depreciation on the same cannot be allowed. Therefore, he made an addition of Rs.36,72,166/-.

4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that the Ld. CIT(A) agreed with the reasons given by the AO and dismissed the appeal filed by the assessee.

5. Though the case was fixed for hearing on 06.07.2017 and 07.11.2017, neither the assessee nor its authorized representative appeared before the Tribunal on the above dates. However, the assessee filed a submission dated 03.11.2017 submitting that the issue involved in the present appeal is covered by the order of the Tribunal in assessee’s own case for the AY 2009-10.

M/s Lake View Developers