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2012 (12) TMI 371 - ITAT MUMBAIComputation of income - Income from house property - Inclusion of notional interest in the municipal ratable value - calculation of notional interest on advance rent received and security deposit(used for renovation) while determining annual value of the let out property - The rent payable as per the lease agreement from the said tenants was Rupee 1/- per sq.ft. per month. The total rent of Rs. 2,54,400 thus was received for the year under consideration from the tenants in respect of Jindal Mansion and since the municipal ratable value of the said building at Rs. 10,61,190 was higher than the actual rent received, income under the head "Income from house property" was declared by the assessee in is return of income by adopting the municipal ratable value. According to the AO, interest on security deposits taken by the assessee from the tenants was liable to be added on notional basis to the actual rent received by the assessee in order to determine the annual letting value of the building owned by the assessee. Held that:- following the decision of court in case of Dy. CIT Versus Reclamation Realty India Pvt. Ltd [2010 (11) TMI 477 - ITAT, MUMBAI] AO directed to accept the income from house property declared by the assessee adopting the municipal ratable value as annual letting value of its property. - in favor of assessee.
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