Case Law Details
Armasol Properties Pvt. Ltd. Vs ITO (ITAT Kolkata)
Introduction: In the case of Armasol Properties Pvt. Ltd. vs. ITO, the Income Tax Appellate Tribunal (ITAT) Kolkata ruled in favor of the assessee. This article provides a detailed analysis of the case, focusing on the allowance of running maintenance expenses under section 24(a) of the Income Tax Act.
Detailed Analysis: The dispute centered around the disallowance of certain expenses claimed by Armasol Properties Pvt. Ltd. The Assessing Officer (AO) disallowed expenses amounting to Rs. 5,33,759/-, stating that they were not allowable under section 24(a) of the Income Tax Act.
Armasol Properties Pvt. Ltd., a private limited company engaged in real estate development and property leasing, claimed expenses related to the running and maintenance of its office. The company, despite having no business income during the assessment year, incurred expenses to keep its office operational.
Both the AO and the Commissioner of Income-tax (Appeals) (CIT(A)) disallowed the expenses, arguing that they were not directly related to the income from house property shown by the assessee.
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