| Case ID |
15bbfaaf-7363-429c-aaff-9e390edd31c0 |
| Body |
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| Case Number |
ITR NO. 134 OF 1995 |
| Decision Date |
Dec 06, 2006 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal, Delhi, confirmed the action of the lower authorities in allowing a deduction of Rs. 30,000 against the claim for collection charges of Rs. 71,703. The Tribunal found that the employees engaged by the applicant were not solely involved in rent collection but also in supervising repair works, justifying the apportionment of expenses. The applicant's failure to provide supporting documentation to substantiate the entire expenditure incurred solely for collecting rent led to the decision being upheld. |
| Summary |
The case of Mira Lal & Sons versus Commissioner of Income-tax revolves around the interpretation of Section 22 of the Income Tax Act, 1961, concerning income from house property. The applicant, a firm with income from godowns, claimed a deduction of Rs. 71,703 for collection charges related to rent. However, the Assessing Officer found that the claimed expenses were not solely for collection but also included supervisory roles for maintenance. The Tribunal supported the Assessing Officer's apportionment of expenses, allowing Rs. 30,000 as a reasonable deduction. The case highlights the importance of providing adequate documentation to support claims for tax deductions, reinforcing the principle that expenses must be directly attributable to income-generating activities. The outcome serves as a precedent for similar tax-related disputes where the nature of expenditures is scrutinized in relation to their purpose in income generation. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
R.K. AGRAWAL,
VIKRAM NATH
|
| Lawyers |
Suyash Agrawal,
A. N. Mahajan
|
| Petitioners |
Mira Lal & Sons
|
| Respondents |
Commissioner of Income-tax
|
| Citations |
2007 SLD 3824 = (2007) 293 ITR 483
|
| Other Citations |
Lalchand Bhagat Ambica Ram v. CIT [1959] 37 ITR 288 (SC),
Ashok Kumar Rastogi v. CIT [1991] 55 Taxman 433 (All),
CIT v. Mahesh Chand [1993] 199 ITR 247 (All)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
22
|