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2016 (12) TMI 1710 - AT - Income TaxReopening of assessment - addition under the head income from house property - determination of fair rental value - Held that:- AO on the basis of the search & seizure operation which took place on 26.11.2009 was of the view that the property of the assessee at 48, Friends Colony East, New Delhi was being used by Gambhirs for their residence and not by the assessee company for the purpose of its own business or profession. On the contrary, the assessee furnished the documents which established that the assessee was having its office in the said property and the AO himself issued the notice u/s 148 of the Act to the assessee on the address of the property in question i.e. 48, Friends Colony East, New Delhi, which is evident from the copy of the notice issued u/s 148 of the Act It is also noticed that the assessee filed its return of income by mentioning the address of the said property which has been accepted by the AO. Therefore, it cannot be said that the assessee was not conducting its business from the property in question. The AO himself had mentioned that the sum for which the whole of property at 48, Friends Colony East, New Delhi might reasonably be accepted to be let out was at ₹ 41,69,718/-. Therefore, the AO himself was not sure about the presumptive let out value. Noting has been brought on record that the assessee had received the rent of ₹ 11,77,528/- as worked out by the AO and not ₹ 1,80,000/- which was offered for taxation - AO reopened the assessment only on the basis of the presumption which is not tenable in the eyes of law - Decided in favour of assessee
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