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2013 (10) TMI 832 - AT - Income TaxAnnual Ratable Value income from house property - Held that:- Facts of the case have to be analysed after considering the principles - Neither before FAA, nor before us, assessee has challenged the finding of fact - In these circumstances if AO decided to adopt reasonable rent for the year under consideration, then, in our opinion, he was justified - To oblige near and dear ones is a common human behavior - Assessee also tried to do the same - It was the result of the sustained investigation of the AO that all the facts came on record - Surrounding circumstances; higher rent of a flat of the same society for the same period, payment of deposits besides the higher monthly rent of the other property, close business relation of the tenant with the assessee-company, consent of the assessee to adopt higher rent;clearly prove that FAA had righty confirmed the orders of the AO the rent received by the assessee, in the AY under consideration, was abnormally low, as compared to the fair market rent, that it had decided to charge less rent because of some extraneous reasons. No assessee would agree for higher taxable income till the evidences, going against him, are collected and confronted to him by the AO - in the present case also same thing happened - Therefore, considering the peculiar facts of the case under consideration and keeping in mind the ratio laid down by the Hon'ble Apex Court in the case of Commissioner of Income-Tax, West Bengal II Versus Durga Prasad More [1971 (8) TMI 17 - SUPREME Court] and Sumati Dayal Versus Commissioner of Income-Tax [1995 (3) TMI 3 - SUPREME Court] the order of the FAA does not suffer from any legal infirmity order of FAA upheld Decided against Assessee. Disallowance of Electricity Expenditure and Society Maintenance Charges Held that:- Disallowance of professional fees, electricity expenses, society charges, miscellaneous expenses and salary, the AO was directed to allow statutory deduction u/s. 24(a) of the Act under the head "Income from House Property "@ 30% of the ALV - once the standard deduction @30% was allowed no further deduction could be allowed unless same was covered by the provisions of section 24(b) of the Act - the disallowance of electricity expenses and society charges confirmed. No 'commercial' activity was carried out by the assessee - When the basic requirement of carrying out of commercial activity itself is missing question of 'complexity' of such activities does not arise - Bill amount of Electricity expenses was allocated among various cabins that were rented out in a particular month - it is a plain and simple case of receiving rent from the house property owned by the assessee - AO has rightly held that basic ingredients of business were missing in the transactions carried out by the assessee with regard to the property-in-question - the order of the FAA confirmed Decided against assessee.
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