Case Law Details
Brief of the Case
ITAT Kolkata held In the case of Oberoi Hotels Pvt. Ltd. vs. DCIT that the AO while applying clause (a) of Section 1 to Section 23, failed to appreciate that in the present case actually let out the property being a farm house is on rent to EIH Limited and if a property is actually let out, then the expectation of its letting out becomes an actual reality and such property cannot be expected to let from year to year at any figure higher than the rent which is being produced actually by the property. Hence, even as per the deeming provision of Section 23(l) (a), in the case of let out property, only the actual rent received was required to be considered as annual value of property.
Ration decidendi – Deeming provision of Section 23(1) (a) applicable only in case of vacant property and not where the property was actually let out.
Facts of the Case
Disallowance u/s 14A for AY 2007-08
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Very appreciated that you put the “ratio decidendi” title. Thank you