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2014 (3) TMI 956 - ITAT MUMBAIRevision u/s 263 - De novo assessment - assessment of rental income from business centre received by the assessee from HDFC Bank Ltd. - AO failed to make the necessary enquiries for calculating the fair market rental value of the property in question - Held that:- AO instead of making enquiries as per the directions given by the ld. Commissioner vide his order passed under section 263, by relying upon the decision of the co-ordinate bench of the Tribunal in the case of Trivoly Investment & Trading Co. (P.) Ltd. (2003 (6) TMI 463 - ITAT MUMBAI) assessed the income taking into account the reasonable interest on the security deposits being usu-fructuous of the property. In our view, the approach adopted by the AO in the de novo assessment was not proper. It can be said to be a case where the AO did not properly comply with the directions while making de novo assessment. It may be observed that while making de novo assessment, though the AO was required to make necessary enquiries as directed by the ld. Commissioner vide his order under section 263 but, at the same time the AO was also at liberty to take into consideration the other facts and circumstances and the case law, if any, available before him. So taking into consideration the overall facts and circumstances, in our view, it will be fit if the matter is restored to the file of the AO for de novo assessment - Decided in favour of assessee for statistical purposes.
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