BOMBAY STOCK EXCHANGE LTD.(NOW KNOWN AS BSE LIMITED),MUMBAI vs. DCIT- RG 2(1), MUMBAI

This appeal filed by the assessee on 17.3.2015 is against the order of the CIT (A)-4, Mumbai dated 22.12.2014 for the assessment year 2007-2008. In this appeal, assessee raised the solitary ground and the same reads as under:- “The Ld CIT (A) erred in confirming the action of the AO in disallowing the entire expenditure of building, repairs and maintenance amounting to Rs. 1,93,99,502/- while calculating “the income from house property”. The Ld CIT (A) failed to appreciate that out of total expenditure of Rs. 1,93,99,502/- incurred by the appellant under the head “building repairs & maintenance” only Rs. 1,03,69,733/- were incurred in relation to the house property and balance amount of Rs. 90,29,769/- was for business activity. The business expense amounting to Rs. 90,29,769/- should have been allowed as a deduction and accordingly the AO may be directed to restrict the disallowance to Rs. 1,03,69,733/- and not Rs. 1,93,99,502/-.”

At the outset, Ld Counsel for the assessee brought our attention to the above ground and mentioned that the only issue to be adjudicated by the Tribunal relates to the addition of Rs. 90,29,767/-, which is the part of gross amount of Rs. 1,93,99,502/-. Bringing our attention to the facts of the case, Ld Counsel for the assessee submitted that the assessee earned „rental income‟ and the same was shown as „business income‟. The same is in tune with the objects of the company.