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2021 (8) TMI 793 - AT - Income TaxDisallowance of claim for deduction of the interest expenditure - As observed by the A.O that the assessee had given certain interest free loan and advance towards certain policy, besides making investments in certain fixed assets, viz. residential premises, banquet hall and other properties - HELD THAT:- As the aforesaid documents, viz. letters of the scripts writers; photographs showing photo shoots of models; rehearsals; auditions; look tests etc. to which our attention was drawn by the ld. A.R in order to fortify his claim that the aforementioned properties in question were being used by the assessee for the purpose of his business had though been admitted by us as ‘additional evidence’, however, the same were not there before the A.O in the course of the assessment proceedings. In the backdrop of the aforesaid facts, we are of the considered view that the matter in all fairness qua the assessee’s claim for deduction of interest expenditure equires to be revisited by the A.O. We, thus, set-aside the matter to the file of the A.O with a direction that he shall re-adjudicate the matter - Decided in favour of assessee for statistical purposes. Income from house property - Annual Lettable Value (ALV) - notional lettable value of the 3 house properties of which one was sold during the year, while for the others were being used by the assessee for the purpose of his business and profession - HELD THAT:- it is the claim of the assessee that the aforementioned three properties in question were being used by him for business purposes. As we have while adjudicating the assessee’s claim for deduction of interest expenditure qua the loans raised by him for acquiring the aforementioned properties, therein, restored the matter to the file of the A.O for re-adjudicating the issue after making necessary verifications after considering the ‘additional evidence’ filed by the assessee before us, therefore, as a corollary thereto the present issue i.e saddling the asssessee with tax qua the ALV of the said properties which as claimed by him had been acquired and were being used by him during the year under consideration for his business purposes, in all fairness, also requires to be restored to the file of the A.O. Accordingly, the A.O is directed to verify as to whether or not the aforementioned properties in question were being used by the assessee during the year under consideration for the purpose of his business - Decided in favour of assessee for statistical purposes. Computation of LTCG - Addition invoking section 50C - grievance of the assessee that the lower authorities had erred by failing to appreciate that as the property sold by him during the year, viz. Midas Banquet Hall was a depreciable asset that formed part of the ‘block of assets’, therefore, the sale of the same ought to have been considered under Sec. 50 - HELD THAT:- As the assessee had rebutted the very basis for assessing the gain on the transfer of the property in question as LTCG in his hands. It is the claim of the assessee that as the property in question formed part of the ‘block of assets’, therefore, the profit arising on the sale of the same could only be be considered as per the provisions of Sec. 50 of the Act. In our considered view, the aforesaid claim of the assessee, though, principally correct, cannot however be summarily accepted on the very face of it specifically in the backdrop of the aforesaid inconsistencies emerging there from, and would require to be verified. Accordingly, to facilitate such verification, we herein restore the matter to the file of the A.O with a direction to re-adjudicate the issue after considering the documents filed by the assessee before us as ‘additional evidence’ - Decided in favour of assessee for statistical purposes.
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