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The Tax PublishersITA Nos. 2506, 2507, 2983/Mum/2018
2020 TaxPub(DT) 5560 (Mum-Trib)INCOME TAX ACT, 1961
Section 23(1)
Valuer had categorically mentioned the suo moto value of subject property and it could be seen that the rental value had been consistently showing a declining trend. Hence, there was absolutely no justification for AO adopting an ad hoc increase on 10% over and above the value assessed in the previous year.
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Income from house property - Computation - AO made ad hoc increase of 10% over and above annual value assessed for the previous assessment year - Rental value showing declining trend consistently
Assessee computed deemed notional rental income from Palm Signature Villa, Dubai in the sum of Rs. 62 lakhs and after claiming granting statutory deduction declared the same under the head 'Income from house property'. AO adopted an ad hoc incease of 10% on the same.Held: Valuer had categorically mentioned the suo moto value of subject property and it could be seen that the rental value had been consistently showing a declining trend. Hence, there was absolutely no justification for AO adopting an ad hoc increase on 10% over and above the value assessed in the previous year.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
INCOME TAX ACT, 1961
Section 14A Rule 8D(2)(iii)
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