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2020 (9) TMI 86 - AT - Income TaxTaxability of notional interest - Income from House Property - Rental income - Taxability under Income tax Act - HELD THAT:- The issue of as to how to treat the security deposit after the completion of the lock-in-period is not the issue before us. AO has not brought anything about earning of the interest by the assessee which has not been offered to tax. The addition was on the sole premise, that the assessee having the security deposit must have earned the interest. In order to tax any amount, the revenue has to prove that the amount as indeed been earned by the assessee. Only the incomes fall under the deemed provisions which have been explicitly mentioned in the Income Tax Act can only be brought to tax under the deeming provision but not any other notional or hypothetical income not envisaged by the Act. Hence, we hereby direct that the addition made by the Assessing Officer on account of notional income on the security deposit cannot be held to be legally valid. Appeal of the assessee is allowed.
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