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2013 (5) TMI 223 - AT - Income TaxComputation of Annual Letting Value (ALV) of the rented property in a particular way - AO had made addition by determining ALV which included 12% interest on interest free earnest deposits received by the assessee - Held that:- This issue is no more res integra in view of the judgment of CIT v. Moni Kumar Subba [2011 (3) TMI 497 - DELHI HIGH COURT] in which it has been held that no addition to the annual letting value can be made on account of notional interest on interest free deposit with the landlord u/s.23(1)(a). Thus there is no basis for inflating the ALV with the amount of notional interest on interest free securities. Also CIT(A) has directed the AO to re-work out the ALV by obtaining data from three websites of internet and then adjusting it with a suitable cost inflation index. This direction was even after considering that the actual rent received by the assessee was higher than the Municipal ratable value representing the fair rent value. In our considered opinion, this direction for determining the ALV has no legal legs to stand out. As such, we cannot approve such direction which has no sanction of law.
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