Tribunal Decision: Interest Recalculation Upheld, Security Charges Remanded, Rental Income Dispute

The Tribunal upheld the direction to re-calculate interest disallowance related to property purchase, disallowance of security charges was remanded for fresh examination, and addition of notional rental income for a vacant property was disputed and referred back to the Assessing Officer for verification. The appeal was partly allowed for statistical purposes, with a decision issued on 30/09/2020.

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Issues Involved:
- Disallowance of interest under section 36(1)(iii)
- Disallowance of security charges
- Addition on account of house property
- Disallowance of Vehicle Expenses
- Notional rental income in respect of Shop At Grand Mall, Gurgaon

Analysis:

Disallowance of Interest under Section 36(1)(iii):
The assessee challenged the disallowance of interest amounting to &8377; 9,83,879 related to the purchase of property at Grand Mall, Gurgaon. The issue had arisen in previous assessment years as well. The Tribunal directed the Assessing Officer to re-calculate the interest attributable to the specific amount utilized for the property in question. The direction given by the Ld. CIT(A) was upheld as it was in line with the relief sought by the assessee.

Disallowance of Security Charges:
The disallowance of &8377; 4,02,396 out of total security charges claimed was contested by the assessee. The Ld. Authorized Representative agreed to provide evidence to show that the security charges were incurred for premises used for business purposes. The issue was remanded to the Assessing Officer for a fresh examination with proper opportunity for the assessee to present its case.

Addition on Account of House Property:
The addition of &8377; 16,80,000 under the head 'income from house property' for a property in DLF Grand Mall, Gurgaon, based on notional rental income estimation, was disputed by the assessee. The property was stated to be vacant throughout the assessment year, contrary to earlier communication indicating it was let out. The Tribunal directed the Assessing Officer to verify the facts and determine whether the property was let out at any point, considering the precedent set by a previous Tribunal order.

Conclusion:
The issues raised by the assessee were remanded to the Assessing Officer for fresh consideration, ensuring adequate opportunity for the assessee to present its case. The appeal was partly allowed for statistical purposes, with the final decision pronounced on 30/09/2020.

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