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2018 (12) TMI 1958 - AT - Income TaxRevision u/s 263 - Revision based on the basis of audit objection - assessee had claimed deduction of interest on housing loan and assessee had also taken interest free deposits over and above the rental income - HELD THAT:- We find that on identical issue in the case of Inderchand Amarchand Chopda [2011 (10) TMI 772 - ITAT PUNE], the Co-ordinate Bench of the Tribunal after relying on the decision in the case of B & A Plantation & Industries Ltd. [2006 (12) TMI 101 - GAUHATI HIGH COURT] has held that when PCIT assumed jurisdiction u/s 263 to give effect to the audit objection, the assumption of jurisdiction to be not valid. On the merits of considering the interest free deposits for determining A.L.V. we find in the case of CIT Vs. Tip Top Typography [2014 (8) TMI 356 - BOMBAY HIGH COURT] has held that the notional rent on security deposits cannot be taken into account for determination of Annual Letting Value. Similar view has also been taken in the case of CIT Vs. J K Investors (Bombay) Ltd. [2000 (6) TMI 9 - BOMBAY HIGH COURT] We further find that no addition on 9 the issue on which the present proceedings u/s 263 has been initiated, has been made by the AO in the assessment order passed u/s 143(3) for A.Y. 2010-11 and for subsequent assessment orders i.e., A.Y. 2012-13, and 2014-15. Here, it would be relevant to point out that the order for A.Y. 2014-15 was passed u/s 143(3) of the Act on 27.02.2014 which was much after the order passed by PCIT u/s 263 for A.Y. 2011-12. Before us, Revenue has not placed any material on record to demonstrate that the view taken by the AO while framing the assessment u/s 143(3) of the Act was an impermissible view or was upon erroneous application of legal principles necessitating the exercising of revisionary powers u/s 263 - the cases laws relied upon by D.R. are distinguishable on facts and are not applicable to the present facts. We are of the view that in the present case, PCIT was not justified in resorting to revisionary powers u/s 263. - We therefore set aside the order and thus, the ground of the assessee is allowed.
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