ARMASOL PROPERTIES PVT. LTD. ,KOLKATA vs. ITO,WARD-12(3), KOLKATA. , KOLKATA

This appeal preferred by the assessee is against the order of Learned Commissioner of Income-tax (Appeals)- NFAC, Delhi [hereinafter referred to Ld. ‘CIT(A)’] dated 30.06.2023 for the Assessment Year (in short ‘AY’) 2016-17.

Ground no. 1 is general in nature and does not require a specific adjudication.

The issues raised in ground no. 2 is against the confirmation of disallowance of brought forward losses of Rs. 3,70,075/- which was not pressed at the time of hearing and accordingly the same is dismissed as not pressed.

The issue raised in ground no. 3 is against the confirmation of disallowance of Rs. 5,33,759/- by ld. CIT(A) as made by the AO in respect of expenses charged in the profit and loss account under various heads.

The facts in brief are that the assessee is a private limited company and derives income from business as well as from house property. During the year the assessee did not have any business income albeit it needs to maintain its office and minimum staff in order to keep the office in a running condition. The assessee has only income from house property. During the year the assessee returned loss from business of Rs. 5,66,441/- and income from house property of Rs. 4,71,653/- thereby the gross total income worked out to be negative i.e. Rs. (-)94,788/-. The Assessing Officer (in short ld. 'AO') during the course of assessment proceedings observed that the house property is the only source of income of the assessee and assessee has availed standard deduction to the tune of 30% and thus offered net income from house property Rs. 4,71,653/-. The AO observed that the assessee has also claimed certain expenses in the profit and loss account which do not relate to the house property income and accordingly