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2017 (9) TMI 572 - AT - Income TaxNature of income - rent received from mobile towers - income from house property OR income from other sources - AO disallowed 30% deduction - Held that:- As in the case of M/s. Bajaj Bhavan Owners Premises Co-op Society Ltd. [2012 (10) TMI 179 - Bombay High Court] held that rent received from mobile towers had to be treated as income from house property, that in the contract there was no obligation on part of the owner with regard to repairs and maintenance of the terrace, that on terrace there were no rooms/structure, that only a portion of terrace had been rented out, that the assessee was entitled for deduction of 30%. FAA has correctly allowed the appeal of the assessee Rent credited to the capital account of the assessee in his proprietary concern - amount over and above the rental income offered to tax - addition to total income after granting deduction of 30% u/s. 24(a) - Held that:- We find that the assessee had shown rental income from Mobile Towers of ₹ 4. 51 lakhs, that it included the disputed amount of ₹ 1. 85 lakhs. If the amount in question was already offered for taxation, then there was no justification for taxing it again. We agree with the FAA that AO had not properly understood the entries in the books of account. Confirming the his order, we decide second ground of appeal against the AO. Addition under the head income from house property - computation to taxable rent - Held that:- As gone through the registered leave and license agreement. We find that assessee owned several properties, residential as well as commercial in Kalyan, that the AO had estimated the ALV of all the properties by adopting the highest rent(Rs. 238/-per sq. ft. ), that no comparable instance of property located in same building /area and having higher rent than the rent received by the assessee was brought on record. It is also a fact that the actual rent received by the assessee is substantially higher than the rateable value as per the local authority i. e. Kalyan-Dombivili Municipal Corporation (KDMC). The AO had not alleged that the assessee had received any amount over and above the rent received in pursuance of the leave and license agreement. - The AO has estimated the house property income without any basis and ignoring the principles enumerated in Tip Top Typography (2014 (8) TMI 356 - BOMBAY HIGH COURT) and Akshay Textiles and Trading Agencies (P. ) Ltd. (2007 (10) TMI 251 - BOMBAY HIGH COURT ) - Decided against revenue
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