DCIT Vs Moni Kumar Subba (ITAT Delhi)
In the present case, the AO added notional interest on the interest free security for arriving at annual letting value. Since that was not permissible, the effect would be that such assessment was rightly set aside by the CIT (A) and the Tribunal. Therefore, the orders would not call for any interference.
Under Section (23)(1)(a), the Assessing Officer has to decide the fair rent of the property. While deciding the fair rent, various factors could be taken into account. In such cases various methods like the contractors method could be taken into account. If on comparison of the fair rent with the actual rent received, the Assessing Officer finds that the actual rent received is more than the fair rent determinable as above, then the actual rent shall constitute the annual value under Section (23)(1)(b) of the Act.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
These cross appeals by the Revenue and assessee are directed against order dated 07/03/20 13 passed by the Ld. Commissioner of Income-tax (Appeals)-XXXIII, New Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2006-07 raising grounds in respective appeals.
2. The grounds of appeal raised by the Revenue in ITA No. 4038/Del/2013 are reproduced as under:
