Tribunal dismisses Revenue's appeal on deemed rent & capital gains, remands legal charges disallowance for verification.

The Revenue's appeal challenging the deletion of deemed rent addition and recalculation of capital gains was dismissed by the Tribunal. The deletion of deemed rent addition was upheld based on consistent rulings favoring the assessee, and the addition to capital gains was found unwarranted due to valuation differences. The disallowance of legal and professional charges was remanded for verification of business usage. The Tribunal's decision favored the assessee, dismissing the Revenue's grounds and allowing the assessee's appeal for statistical purposes.

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Issues:
1. Deletion of deemed rent addition
2. Recalculation of capital gains
3. Disallowance of legal and professional charges

Deletion of Deemed Rent Addition:
The Revenue challenged the deletion of deemed rent addition amounting to Rs. 4,89,46,330. The Assessing Officer determined the deemed rental income based on previous assessments and inter-se disputes between tenants. The Commissioner (Appeals) deleted the addition following Tribunal decisions favoring the assessee in earlier years. The Tribunal upheld the deletion, citing consistent rulings in the assessee's favor in previous cases. The ground raised by the Revenue was dismissed.

Recalculation of Capital Gains:
The Revenue contested the deletion of an addition of Rs. 1,06,821 due to a difference in working of capital gains. The Assessing Officer reduced the indexed cost of acquisition based on government-approved valuer values. The Commissioner (Appeals) found discrepancies in the valuation approach and deleted the addition. The Tribunal agreed with the Commissioner, noting that the Assessing Officer's consideration was limited to a few properties. As the overall valuation by the assessee was lower than the government valuer's, the addition was unwarranted. The Tribunal upheld the Commissioner's decision, and the ground raised by the Revenue was dismissed.

Disallowance of Legal and Professional Charges:
The assessee appealed the disallowance of Rs. 2.41 lakh for legal and professional charges. The Assessing Officer disallowed the claim as the property generated income under the head house property. The Commissioner upheld the disallowance. The Tribunal noted that part of the property was used for business purposes, not just rental income. The issue was remanded to the Assessing Officer to verify the business usage claim. If substantiated, the expenditure should be allowed. The assessee's appeal was allowed for statistical purposes.

In conclusion, the Revenue's appeal was dismissed, and the assessee's appeal was allowed for statistical purposes. The Tribunal's decision was pronounced on 28.03.2018.

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