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2012 (9) TMI 794 - ITAT MUMBAIAddition under the head “income from house property’ - assessee contended that shops were the commercial asset of the appellant, and since no rent was received, there was no question of determining the notional income and taxing the same under aforesaid head - Held that:- For determination of ALV u/s 23(1), AO has first to find out the reasonable expected rent which the property might fetch by letting out from year to year and then this reasonable expected rent has to be compared with the annual rent received or receivable. In the case in hand, when the property was never let out, than the AO has to consider all the relevant factors including the standard rent, if any as determined under the provisions of Rent Control Act or Municipal Rateable Value of the property for computing the Annual Letting Value. Since no such exercise was carried out, matter restored back Long term capital loss - computation at reduced figure in comparison to computation of assessee - AO denied the claim of expenditure incurred by the assessee on the improvement of the property - Held that:- Since it is not clear from the records that whether the assessee has capitalised the cost of improvement and shown in the balance sheet for the respective assessment years; therefore, in the interest of Justice, we remit this issue to the record of the AO for deciding the same afresh after considering the aspect of capitalisation of the expenditure incurred on the improvement, stamp duty and interest etc
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