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2015 (10) TMI 2026 - AT - Income TaxAddition of income from House Property u/s. 23(1 )(a) - CIT(A) confirming the addition by rejecting the submissions of the assessee that no interest on interest free advance was assessable as income from House Property - Held that:- In the present case it is seen that the AO has not made any enquiry, nor any material has been brought on record to show that rent received by the assessee was lesser then the fair market rent nor any inquiry or investigation has been done to find out the effect of interest free deposits and to determine the fair market rent expected to be fetched by the property in question, as per clause (a) of section 23(1). Under these circumstances, AO cannot be allowed to make addition on account of notional interest. Since this issue stands squarely covered with the case of Mrs. Bharati Anirudh Kilachand [2015 (1) TMI 1104 - ITAT MUMBA] it is held that the addition made by the AO is contrary to law and facts and the same is directed to be deleted. - Decided in favour of assessee. Addition on account of disallowance of Bank Interest and Bank Charges on the ground that the Bank Loan is utilized for other than business purpose - Held that:- As it has been argued that part of the loan raised during the year has been utilized for repayment of the old loan. This fact has not been controverted by the Ld. DR. Also stated before us that no disallowance has been made out to the amount of interest paid on the old loans in earlier years. In view of all these facts and circumstances, we direct the AO to allow the proportionate amount of interest paid on amount of loan of Bajaj Finance which has been utilized in making repayment of the old loans. The balance disallowance out of the amount of interest is confirmed. With regard to disallowance of loan processing charges and bank charges it is noted by us that these have been incurred for the purpose of the business of the assessee and therefore these are directed to be allowed. - Decided in favour of assessee in part.
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