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2012 (10) TMI 483 - AT - Income TaxAddition on account of computation of Annual Letting Value - CIT(A) deleted the addition - Held that:- The only reason given by the Assessing Officer for making the addition was his finding in the assessment year 1996- 97 which have been set aside by the CIT(A) and the findings of the CIT(A) have become final. Therefore, no basis is left with the Assessing Officer for making the enhancement in the ALP adopted by the assessee - In the light of view taken by the co-ordinate Benches in the preceding years on the identical issue, especially when the Revenue have not placed any material, controverting the aforesaid findings of the CIT(A) to enable to take a different view in the matter to interfere is required - in favour of assessee. Addition on account of expenditure not pertaining to business - CIT(A) deleted the addition - Held that:- The assessee consistently followed the system of allocating direct expenses to the respective heads viz. house property and business income while indirect expenses were allocated in the ratio of 40:60 between house property and business income. Since the portion of expenses relating to house property income had already been disallowed by the assessee suo moto, keeping in view the past history and method followed by the assessee, the CIT(A) was of the opinion that the AO was not justified in making further disallowance of expenses since certain expenses were required for maintenance of the corporate structure of the assessee. In view of consistent practice followed by the assessee, especially when the Revenue have not placed any material controverting the aforesaid findings no different view in the matter is called for - in favour of assessee. Disallowance of set off of speculation loss - CIT(A) deleted the addition - Held that:- The term 'derivatives' in which underlying asset is shares, would fall within the meaning of 'commodity' used in s. 43(5) and that cl. (d) of s. 43(5) introduced by Finance Act, 2005 w.e.f. 1st April, 2006 was prospective in nature and would be effective from the date from which the legislature made it effective, i.e. AY 2006-07 onwards. The case of the assessee relates to AY 2008- 09 and therefore, applicability of aforesaid cl. (d) of s. 43(5) of the Act is required to be examined - since neither the AO nor the CIT(A) examined the applicability of said clause (d) nor relevant facts and figures are before us it fair and appropriate to set aside the order of the CIT(A) and restore the matter to the file of the AO for deciding the aforesaid issue afresh.
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