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2022 (5) TMI 37 - AT - Income TaxDisallowing House property loss - AO disallowed the loss by holding that the assessee has not produced copy of rent agreement to prove genuineness of rental income - HELD THAT:- On absence of rent agreement, the assessee has placed on record confirmation of the tenant, along-with PAN number and also bank statement reflecting receipt of rent through banking channels. The same has not been disputed by the Department and therefore, in our view the assessee has adequately substantiated that the premises have been given on rent. Municipal valuation/standard rent - Department has also not come up with any alternate figure of rent for which the property should have been let out. It has cast the upon the assessee to furnish such alternate figure albeit without disputing the fact that the assessee has received monthly rent of Rs. 30,000/- per month which has also been correctly reflected in the return of income. Section 23 of the Act deals with the method of the determination of the 'annual value' of a house property. Section 23(1)(a) defines the 'annual value' of a house property as 'the sum for which the property might reasonably be expected to let from year to year'. AO has not disputed the receipt of monthly rent of Rs. 30,000/- as having been received by the assessee. Further, the Ld. AO has not brought anything to on record to prove that the value of rent reflected by the assessee did not reflect the 'reasonable' rent for which the property could have been let out or that the value of rent has been undervalued by the assessee. AO has simply denied the entire deduction of interest paid against rental income without bringing on record anything to dispute any of the documents furnished on record by the assessee. - Decided in favour of assessee.
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