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2016 (2) TMI 34 - AT - Income TaxAssessment of income from house property - actual rent received by the assessee - Held that:- The annual value of the property is required to be determined u/s 23(c) of the Act, since the property was let out in the preceding year as well as for a part of the year. It is seen that the actual rent received by the assessee for the year under consideration is less than the municipal rateable value as shown by the Ld A.R. In the case laws relied upon by the assessee, it has been held that the municipal rateable value should be adopted as the fair rental value u/s 23(a) of the Act. Accordingly, we agree with the submissions made by Ld A.R that the actual rent received by the assessee should be taken as annual value u/s 23(c) of the Act. Accordingly, we set aside the order of Ld CIT(A) on this issue and direct the AO to adopt the actual rent received by the assessee as annual value for the year under consideration. - Decided in favour of assessee Clubbing of income - Rent received by the assessee whereas service charges received by wife and daughter of the assessee in relation to same property - Held that:- Considering the assessee's submissions that the two ladies cited have only received the payments, from which TDS was deducted by M/s Talwalkar. Further, it is not the case of the AO that the wife of the assessee and daughter-in-law did not provide any service to M/s Talwalkar Better Value Fitness Pvt. Ltd. The ld. AR also submitted that two ladies have declared the income received from M/s Talwalkar Better Value Fitness Pvt. Ltd in their respective hands and TDS deducted by M/s Talwalkar Better Value Fitness Pvt. Ltd from the same was also claimed by them we are of the view that the purpose of payment has clearly been demarked and there is no material on record to suspect the same. Accordingly, we are of the view that there is no reason to assess the income received by the assessee‘s wife and daughter-in-law in the hands of assessee. Since the assessee has not received any income and paid any payment to assessee’s wife and daughter-in-law, the question of deduction of TDS and application of the provisions of section 40(a)(ia) of the Act also does not arise. In view of the above, we set aside the order of ld. CIT(A) on this issue and direct the AO to delete the addition - Decided in favour of assessee
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