Notional Interest not Taxable as Income from House Property – Full Bench of Delhi HC

CIT Vs. Moni Kumar Subba (Delhi High Court – Full Bench) – In the instant case, it was held that that in a case where the Assessing Officer finds that the actual rent received is less than the fair rent due to the fact that the assessee has received very free deposit undertake high interest security deposit, he may necessary actions to determine the fair rent under section 23(1)(a) of the Act. But any notional interest determined on the interest free security deposit cannot be considered for determining the fair rent. Also, rateable value, as per the correct municipal valuation  may be taken as the Annual Letting Value under section 23(1)(a) of the Act.

ORDER

A.K. SIKRI, J.

Please become a Premium member. If you are already a Premium member, login here to access the full content.