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2012 (11) TMI 58 - AT - Income TaxWhether income from house property estimating at 10% of value of property – Assessee submitted that the 3 flats and one shop having value of which comes to are being used for assessee’s political activities - AO treat it as violation of the provisions of section 22/23 and estimated 10% of the investment in such House Property as the notional income – Held that:- Assessee has also not furnished the details of payment of Municipal Taxes. In totality of the facts of the case and in the interest of justice, we deem it proper to restore this issue to the file of the AO to ascertain as to whether the 3 flats and a shop in question are being used for the political activities of the assessee or not. Issue remand back to AO A house in village of assessee is being used for agricultural activities – AO estimates 10% of the investment in such House Property as the notional income - Held that:- Since in the assessment order AO has determined the agricultural income at Rs. 75,000/-. Therefore, if the house at Village is used for agricultural activities then no notional rent could be computed. Therefore restore back the same to AO for fresh verification Assessee has 2 vacant plots - AO has adopted 10% of the investment value as the notional rent under head income from house property – Held that:- Since the adoption of 10% of the investment appears to be on the higher side. We, therefore, direct the AO to adopt 8% of the investment as the notional rent from such house properties. Addition on the basis of report of valuation officer on under constructions property – AO made reference to Department valuation officer to determine cost of construction, in absence of books – Held that:- As the assessee neither produced books of accounts before the AO nor any books of accounts were found during the course of search could not be controverted by the assessee. Therefore under these circumstances AO rightly referring the matter to the DVO for determining the cost of construction. Whether CIT(A) accepting the report of DVO after passing the assessment order by AO – Held that:- Since the DVOs report was received after passing of the order by the AO, therefore, the CIT(A) was fully justified in accepting the report of the DVO. It is the settled proposition of law that the powers of the CIT(A) are co-terminus with that of the powers of the AO. He may confirm, reduce, enhance or annul any assessment made by the AO. Issue decides in favour of revenue
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