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2016 (2) TMI 1248 - ITAT MUMBAIDetermination of house property income - rental income in respect of vacant period - Property was let out for a period of ten months out of twelve - rent received by the assessee together with the notional interest on the security deposit - HELD THAT:- Property was let out for a period of ten months and it remained vacant for a period of two months. No finding by the AO that the rent received by the assessee was less than the fair market value as per the requirement of sec. 23(1)(b) - AO has determined the rental income in respect of vacant period also and the same is against the provisions of section 23(1)(c). Notional interest estimated by the AO on the security deposit received by the assessee, we notice that the AO has not made any enquiry to find out that the rent received by the assessee compels inclusion of the such notional income, which in turn could be determined only if it is shown that the rent received by the assessee together with the notional interest on the security deposit was less than the fair market value determined u/s 23(1)(a). See case of CIT Vs. Tip Top Typography [2014 (8) TMI 356 - BOMBAY HIGH COURT] . In view of the above, we do not find any infirmity in the decision rendered by Ld CIT(A) on this issue. Addition made u/s 41(1) - CIT(A) has given categorical finding that liability of the assessee towards the deposits did not cease. CIT(A) has noticed that one of the parties, viz., ICICI Bank has initiated legal proceedings against the assessee. Hence, we are of the view that the CIT(A) was justified in cancelling the addition made u/s 41(1) of the Act. Determination of the business income - CIT(A) has held that the assessee did not carry on any business and hence the question of setting off of current year as well as brought forward losses of the assessee does not arise. We notice that the said decision of the CIT(A) is in accordance with law. Hence, we do not find any reason to interfere with the order of the CIT(A) on this issue.
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