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2010 (2) TMI 1182 - HC - Income TaxNotional rent under the deeming provisions of section 23(1)(a) - HELD THAT:- As the Tribunal has relied upon the judgment of this Court in J.K.Investors [2000 (6) TMI 9 - BOMBAY HIGH COURT] in coming to the conclusion that the value of a notional advantage like notional interest on deposit cannot form part of actual rent - no substantial question of law can be said to have arisen, particularly when the Tribunal has followed a judgment of this Court - no effort has been made to urge before this Court that the judgment is distinguishable for any reason. Investments out of the interest free funds - HELD THAT:- Following the judgment of the Division Bench in CIT vs. Reliance Utilities and Power Ltd.,[2009 (1) TMI 4 - BOMBAY HIGH COURT], the Tribunal held that if the Assessee had funds available, both interest free and loaned, there would be a presumption that the investments were out of the interest free funds if the interest free funds were sufficient to meet the outlay on the investment. In the present case, having regard to the finding of fact that the assessee had sufficient interest free funds, no substantial question of law would arise. Accrual of the income - fixed deposit - The case of the assessee that the interest on the fixed deposit would accrue only on the date of maturity has been accepted - HELD THAT:- Counsel appearing on behalf of the Revenue has not demonstrated to the Court any reasons as to why the principle laid down in E.D.Sassoon [1954 (5) TMI 2 - SUPREME COURT] by the Supreme Court would not be attracted. In the circumstances, no substantial question of law would arise. The appeal shall accordingly stand dismissed.
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