Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1082 - AT - Income TaxDetermining Fair Market Value in terms of Section 23(1)(a) - addition of notional interest @ 7% on interest-free deposit - Annual value understatement - Held that:- In the present case, AO has not brought on record any material to demonstrate that the actual rent charged by the assessee is less than the fair market value or the interest free security deposit has affected the rent charged by the assessee. We cannot support the mode of additions made by the AO on estimate basis in the absence of any evidence on record. Thus the decision taken by the CIT (A) in deleting the addition made by the AO is fair and reasonable and it does not call for any interference. Accordingly, grounds raised by the Revenue in both the appeals are dismissed. Deemed dividend u/s 2(22) - Held that:- We are fully in agreement with the submissions of the ld. AR that since substantive addition has been deleted in the hands of M/s.BIEPL and thus, the protective addition be set aside and the matter be restored to the file of the AO. Accordingly, we set aside the order of the ld.CIT(A) and restore this matter to the file for AO for fresh examination of the matter and decide the same in accordance with law after being providing necessary opportunity of being heard to the assessee. This ground is allowed for statistical purposes.
|