Expense incurred for earning business income is allowable as business expense

ACIT Vs Gentex Merchants Pvt Ltd (ITAT Mumbai) ITAT Mumbai held that since service charges collected from the tenant was accepted as ‘income from business, any expenses incurred thereof is allowable as business expense. Facts- AO noted that the assessee has declared income from two heads of income viz. income from house property and income from business and profession. The assessee company owned a residential property and has let out the said property on rent of Rs. 1,20,00,000/- for the year. Further the assessee also charged a fixed amount of Rs.2,00,000/- plus applicable service taxes per...