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2018 (12) TMI 407 - AT - Income TaxAddition as income from house property on a notional basis - Annual value how determined - Held that:- The assessee has already elected one house situated at Saraswati Sadan as self occupied property, the value of which has been taken as Nil. Therefore, in terms of Clause (4)(b), the annual value of the other properties are to be determined as per clause (1) which envisages that the annual value of the same are to be considered as the sum for which the property might reasonably be expected to let out from year to year. We have already noted that the properties or any part thereof, as listed at serial number 4 & 5, were never let out by the assessee in any of the preceding year or during impugned AY. Therefore, the sub-clauses (1)(b) or (1)(c) becomes inapplicable to the same since both these applies in situation where property or any part thereof is let out, which is not the case here. The expression let as used by both these sub-clauses do not include mere intention to let out but the actual let out of the property keeping in view the doctrine of literal interpretation. If the annual value of the same are taken as nil in terms of sub-clause (1)(c) as contended by AR, then the provisions of clause (4) shall become otiose and shall have no applicability at all in any situation, which do not appear to be the intention of the legislatures. Estimation of annual value @8.5% appears to be without any basis since the annual value has to be determined as the value for the property might reasonably be expected to let from year to year. Therefore, AO is directed to re-compute the same in terms of the statutory provisions - Decided in favour of assessee for statistical purposes.
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