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2018 (2) TMI 1081 - AT - Income TaxDisallowance of commission paid - Held that:- For the present year it is undisputed that commission paid by the assessee is 12.28% of revenue whereas, in Assessment Year 2008-09 the coordinate bench has accepted 12.73% of the commission of the turnover as reasonable. Therefore, we do not find any reason to confirm the disallowance. In the present case also the assessee has submitted the details of commission paid. It is not the case of the AO that such commission is not backed by room rent revenue. in view of this as the coordinate bench has determined the percentage based on the gross revenue we do not find any reason to confirm the disallowance. In the result ground No. 1 of the appeal fo the assessee is allowed. Interest expenditure on funds borrowed to purchase the property not considered as acquisition of the property - Held that:- CIT(A) has held that as the appellant had received the possession of the property on 12.10.2006 the interest paid prior to and after receiving the possession is deemed to have been allowed against the annual value of the property. However, he has held that interest expenditure is to be a part of cost of acquisition but because of section 24B the assessee is not entitled to the same. However, the ld CIT(A) has failed to appreciate that though the deed of this property was executed on 12.10.2006 but the property was incapable of being let out as there was no occupancy around that area. However, the above fact could not be demonstrated before the ld Assessing Officer and we do not find any such mention in the order of the ld Assessing Officer, therefore, we set aside Ground back to the file of the ld CIT(A) to correctly adjudicate to ascertain the facts whether the property is capable of being let out or not and then decide about the amount of interest to be considered as cost of acquisition. Treatment to interest expenditure incurred by the assessee for the business purposes - Held that:- CIT(A) should have examined the claim of the assessee of allowability of the above expenditure as allowable interest expenditure against the business income. In view of this we set aside this ground of appeal to the file of the ld CIT(A). In the result ground of the appeal of the assessee is allowed accordingly. Gain from sale of property - LTCG or STCG - period of holding - Held that:- Both properties were acquired on the date on which the properties were allotted to the assessee and therefore, both the properties are long term capital asset. In short he held that the date of allotment of the property the date of acquisition of the property. Ld DR could not point out that how the date of acquisition should not be considered from the date of allotment of the property. In view of this we do not find any infirmity in the order of the ld CIT(A) in holding that both the properties are held by assessee for more than 36 months and therefore, they are long term capital assets - Decided against revenue
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