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2017 (12) TMI 569 - AT - Income TaxRevision u/s 263 - ALV determination - genuineness of Gross Rent received - Held that:- The present case the CIT has exercised jurisdiction u/s.263 of the Act on the ground that the AO while completing the assessment proceeding did not make enquiries which he ought to have made, it is necessary to look into what enquiries the AO made on the issues raised in the order u/s.263 of the Act. It is clear from the submissions and material available on record with regard to the deduction of ₹ 2,41,347/- u/s.24(b) of the Act on account of interest paid to SBI ₹ 1,35,428/- and ₹ 1,05,919/- to ICICI Bank on loans borrowed.Assessee is an owner of two houses. In the assessment proceedings, the assessee submitted the details of both the houses. The assessee has replied all the enquires made by the Assessing Officer by issuing notice u/s 142(1) of the Act. The assessee had received rent of ₹ 12,000 per month and he offered the sum for taxable purposes. The annual letting value of the house has taken to be nil since the assessee had such option u/s.23(2) /23(4) of the Act where the assessee owned more than one house. Since the assessee was in accommodation of more than one house, so far as the provision of section 23(2) is applicable to him and therefore, considering the factual position as explained above, we do not find any infirmity in the order passed by the Assessing Officer. In these circumstances, it cannot be said that the order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue. Therefore, we quash the order u/s.263 of the Act. - Decided in favour of assessee.
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