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2019 (6) TMI 435 - ITAT KOLKATAAddition u/s 14A r.w.r. 8D(2) - whether any interest expenditure can be attributed to earning of exempt income ? - HELD THAT:- It is noted that assessee has deployed own funds to the tune of ₹ 4.39 cr. and investment to earn exempt income is only to the tune of ₹ 46 lacs, so, no disallowance need to be made under Rule 8D(2)(ii) of the Rules. For that we rely on the decision of CIT-vs.- Reliance Utilities & Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] . Further, in respect of disallowance under Rule 8D(2)(iii) the AO is directed to compute 0.5% on the investment on which the assessee earned dividend income as held by this Tribunal in REI Agro Ltd. [2013 (9) TMI 156 - ITAT KOLKATA] Income from house property - annual letable value of the house property which the assessee stated to have inherited from his mother on which the AO has calculated the annual letable value invoking sec. 22 and 23 - HELD THAT:- No inquiry was carried out by the AO before estimating the annual letable value of the house despite the assessee pointed out this fact to the AO that the house in question is an old house, which is in a dilapidated condition and so it is not habitable and therefore, the question of letting out of the property does not arise. In the interest of justice and fair play set aside the order of CIT(A) and restore the matter to the file of AO to verify the contention of the assessee that the house in question is in a dilapidated condition and not habitable. AO after making enquiries finds the contention of the assessee to be correct then no deemed provision of sec. 22 read with section 23 should be saddled on the assessee. If the contention of the assessee fails and the house is habitable then the AO to make reasonable annual letting value considering the location and rent which the house could fetch in that locality in accordance to law after hearing the assessee. - Appeal of assessee is allowed for statistical purpose.
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