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2024 (4) TMI 448 - ITAT DELHIAddition on account of unexplained investment - addition on the basis of market price of the land and building whereas the assessee has declared the value of these assets as per cost incurred by it when the land was purchased in F.Y. 2010-11 - HELD THAT:- The basis of the addition is the valuation report submitted by the assessee during the course of assessment proceedings which was based on the market value of land and building as on the date of valuation - purchase price declared by the assessee is the cost incurred by the assessee and, therefore, AO grossly erred in taking market value of the assets from the valuation report. We do not find any reason to interfere with the findings of the CIT(A). Ground stands dismissed. Addition on account of notional rental value - AO found that market value of the constructed property is far more than what has been stated by the assessee and taking 8% as annual rental value as per the agreement, thus made addition - HELD THAT:- We find that the assessee has computed its rental income as agreed with the lessee and annual lettable value is also justified using average rent charged in nearby area at Noida. We, therefore, do not find any merit in taking notional rental value on the fair market value of the constructed property. Assessee has accordingly shown 8% rental income in the investment shown in the books of account. We, therefore, decline to interfere with the findings of the ld. CIT(A). Addition on account of sundry creditors - HELD THAT:- The only income of the assessee is income from house property. Therefore, there is no question of any sundry creditors/payables. Assessee has not claimed any expenditure. Therefore, there is no question of disallowance of any expenditure. We do not find any error or infirmity in the findings of the ld. CIT(A).
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