Urgent
This query is : Resolved
10 October 2012
Suppose an assessee is carrying on business in rented premise.The part of premise is subrented to another person.Assessee business is in loss.Now what ITO do is that he doesnot allow the exp. Of business and the loss rather treat the rental income as his income.
Provide explanation with legal provision or case if any
Thanks in Advance
Provide explanation with legal provision or case if any
Thanks in Advance
10 October 2012
Whether business is continued or not? If a loss making business is still cntinuing, ITO cannot disallow rental exps as they are normal business expenditure . The rental recived on sub let is taxable as income in either case and the ITO is right.
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10 October 2012
But ITO is not considering the expense(Rent and other i.r.t business) nor the business loss.The only thing he considered is the sublet Income.
12 October 2012
ITO IS BOUND TO ALLOW THE EXPENSES IF THERE WAS ANY BUSINESS DURING THE YEAR UNDER REVIEW.
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