Case Law Details
Moraj Building Concepts Pvt. Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that while computing notional rent, rent should be estimated on the basis of municipal rateable value.
Facts- The original assessment order was passed u/s. 143(3). But, these assessments were unabated and a search and seizure action was undertaken in Gurnani Group and the assessee was also covered in the above search proceedings. In the search proceedings certain unaccounted cash receipts were unearthed and merely observed that assessee has huge unsold flats. However, it was noted that there is no incriminating material found during the search. A notice u/s. 153A were issued and served on the assessee. AO has made various additions relating to notional income from the unsold flats and further, made additions relating to unsecured loans.
By relying on the decision of the Delhi High Court in the case of CIT v. Ansal Housing Finance and Leasing Company Limited, AO estimated the rent on the said flats to the extent of ₹.1,91,814.
CIT(A) sustained the addition. Being aggrieved, the present appeal is filed.
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