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2015 (4) TMI 401 - ITAT HYDERABADRevision u/s 263 - Notional interest interest free security deposit should have been considered while determining the annual letting value of the property - The income from letting out of furniture and fixtures has to be assessed under the head ‘other sources’ - Held that:- various Courts have held a consistent view that notional interest cannot form part of actual rent. Hence, there is no justification to take a different view than what has been stated in Asian Hotels Ltd [2007 (12) TMI 274 - DELHI HIGH COURT] . As far as the valuation of GHMC is concerned, on a perusal of the order makes i very much clear that valuation arrived at by the GHMC at ₹ 97,34,832 is for an area of 2,34,423 sq.ft. whereas as per lease agreement area leased out by assessee to lessee is 1,35,000 sq.ft.. Therefore, unless, it is established on record that area leased out to lessee is 2,34,423, the value of ₹ 97,34,832 has fixed by GHMC cannot be applied for computing ALV. As the exact area leased out by assessee has not been verified either by AO or by ld. CIT, we are inclined to remit the issue back to the file of AO with a direction to verify the exact area leased out to lessee and thereafter compute ALV by proportionately applying rate fixed by GHMC in order dated 25/05/07 for different floors. Accordingly, this issue is remitted to file of AO. AO was not correct in treating the income received towards rent on furnitures and fixtures as business income. There is no dispute that assessee as the owner of property was exploiting it by letting it out and in the process realizing income by way of rent and such rental income is assessable as income from house property. In the process of letting out the property certain assets are also let out to the tenant. However, letting out of such assets are incidental to the letting out of the property. Therefore, the rent received from letting out of furniture and fixtures assume the same colour as the rent received from the building. In these circumstances, income received towards furnitures and fixtures has to be treated as income from house property only as is the case with the rental income from letting out of the premises and cannot be treated as business income. Similar view has been expressed by coordinate bench in case of Smt. G. Prameela Devi Vs. ITO,[2014 (12) TMI 343 - ITAT HYDERABAD]. Therefore, we direct AO to treat the amount received towards furnitures and fixtures as income from house property and not as business income. The directions of the CIT u/s 263 modified to that extent. - Decided partly in favour of assessee for statistical purposes.
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