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2018 (5) TMI 1898 - AT - Income TaxIncome from house property - Deemed rent under the head of income from House property - ALV computed by the AO under section 23(1)(a) - property is covered under rent control Act as the Bombay is governed by rent Control Act - as argued by assessee that once the property value is determined by Rent Control Act and ALV declared by assessee is in excess of market rateable value of BMC, no further fair market value of the property for the purpose of deemed rent under section 23(1)(a) or 23(1)(c) can be estimated - HELD THAT:- As in the case of CIT vs. Moni Kumar Subba [2011 (3) TMI 497 - DELHI HIGH COURT] that even ALV cannot be determined by adding notional interest on the interest free deposit and according to Hon’ble High Court that it is not permissible. Hon’ble Delhi High Court and TIP TOP TYPOGRAPHY [2014 (8) TMI 356 - BOMBAY HIGH COURT] both are in consonance that only value fixed by Municipal Authorities can be a rational yardstick for computing deemed rent under section 23(1)(a). As the issue is squarely covered by the decision of Hon’ble Bombay High Court in the case of Tip Top Typography (supra), respectfully, following the same I delete the addition made by AO and allow the appeal of assessee. - Appeal of assessee is allowed.
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