Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 145 - HC - Income TaxCapitalisation of rent - Held that:- In respect of the first property Tribunal noted that no comparable sale instance had been given and that there was no incriminating material which could justify the addition made. The Assessing Officer had added an amount of only ₹ 46,916/-. The Tribunal rightly deleted the addition. Second property, Tribunal rightly observed that the DVO had valued the property on 18.11.2008 ignoring the vital fact that the property was acquired in the year 2003 and registered on 03.03.2004 with the constructed house thereon. There was no evidence to support the addition. The same was, therefore, rightly set aside. Third property Tribunal found merit in the argument that the PWD rates should have been adopted instead of the CPWD rates and that no rebate had been given for self-supervision and adopted a rebate of 15% on account of difference between the CPWD rates and the PWD rates and 5% on account of self-supervision. The Tribunal, therefore, after balancing the factors reduced the addition to ₹ 1,61,542/-. There is no warrant for interfering with the discretion. Last property the rent was taken as prevalent in the year 2007-2008. It was noted that by then the locality had become more prominent and had started fetching commercial value. The rent was fixed in respect of a lease granted in favour of a Multi National Company (MNC). The Tribunal rightly noted that the estimated cost of the acquisition ought to have been considered with respect to the relevant assessment year, namely, 2003-2004. At that time, the rent was about 1/10th of the rent in the year 2007-2008. The addition was, therefore, rightly deleted. - Decided against revenue.
|