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2017 (8) TMI 742 - AT - Income TaxAssessment of notional rental income - self occupied property - assessee purchased two flats / properties - assessee has claimed that two flats are single residential unit used by the assessee therefore, no notional rent was required to be assessed with regard to the second flat / property - Held that:- AO in assessment order admitted this fact that the entrance of the both the units was single one and the kitchen of both the units was also be single one. However, the assessee did the modification in accordance with her convenience. The assessee also produced some other evidences to prove this fact that both the units were being used as a single unit therefore, no notional rental value of the other unit was liable to be assessed. The assessee has sold both the units by virtue of agreement dated 24.06.2010 in which the Flat No. 1401/02 have been shown as single unit. The photograph of the entrance of the flat has already been placed on record which lies at Page No. 156 to 157 of the paper book. The photograph of the kitchen has also placed on record in which the single unit was being seen and the photographs are also lies at Page No. 159 of the paper book. The assessee also adduced the telephone bill in respect of Flat No. 1401 and 1402 which lies at Page No. 160 to 162. These telephone bills speaks that the telephone bills were being issued with the name of the assessee at the Flat No.1401/02. The builder also issued the receipt and payment of the legal cost, society share money and part payment of Flat No. 1401/02 with the name of the assessee which lies at Page No. 164 of the paper book. In view of the said document and observation recorded by the AO. It is quite clear that the assessee was using the Flat No. 1401/02 as a single unit. In the said circumstances, the notional income of the second flat 1402 is not liable to be assessed separately. The annual rental value of the Flat No. 1402 be treated as nil being no notional rental income is required to be assessed in respect of a single unit. - Decided in favour of assessee. Addition of expenses - disallowance in the process of calculating rental income on deemed let out property and disallowance was computed on the basis of annual rent of both the properties - Held that:- While deciding the issue no. 1, we have arrived at this conclusion that the Flat No. 1401/02 were being used as a single unit therefore, disallowance on the basis of notional income doesn’t seems justifiable. Moreover, the assessee did not claim any expenses against the said property. Therefore, in the said circumstances, we are of the view that the finding of the CIT(A) on this issue is not justifiable therefore, we set aside the finding of the CIT(A) on this issue and allowed the expenses. Accordingly, this issue decided in favour of the assessee
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