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2016 (4) TMI 703 - AT - Income TaxDeduction deduction u/s 80RR - Held that:- As relying on earlier AY 2003-04 15% of the expenses are reasonable and be attributed to earning foreign income from outside India. The AO is directed to compute deduction u/s 80RR of the Act accordingly. The appeal of the revenue on this ground is dismissed with the above direction. - Decided in favour of assessee Addition on account of ‘on money’ paid in respect of acquiring tenancy rights of heritage bungalow - payment made through undisclosed sources - CIT(A) deleted the addition - Held that:- We find from the order of AO that during the year the assessee had neither taken any property on lease nor purchased as is clear from tenancy agreement and deed of assignment which relates to the years other than the year in question. We also note that the addition in the current year was on protective basis and the substantive addition was made in the block assessment which was stated to be barred by limitation. We find merit in the arguments of ld AR that that the property taken on tenancy in the earlier year was subsequently purchased with the prior permission of the departments and the certificate u/s 269UL(3) of the Act is placed at page no 28 of the paper book. In the lights of all these facts the addition as made by the AO is just a notional and hypothetical which lacks any basis and there is nothing on records to corroborate the action of the AO. In our opinion the order of CIT (A) who had comprehensively gone in into all the issues appears to correct and does not require any interference on our part and accordingly the appeal of the revenue is dismissed. - Decided in favour of assessee
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