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2017 (5) TMI 409 - ITAT DELHIIncome from house property - annual letable value of the house property - Held that:- In view of the decision of the Hon’ble Delhi High Court in CIT versus Moni Kumar Suba (2011 (3) TMI 497 - DELHI HIGH COURT ) we hold that the Ld. assessing officer as well as the Ld. CIT (A) were not correct in enhancing the annual value of the property by notional amount of interest on account of interest free refundable deposit given by the landlord to the assessee. In the result ground No. 4 to 10 of the appeal of the assessee are allowed. Method of accounting - interest income from Kisan Vikas Patra - Held that:- As considered the rival contentions and also per used the provisions of section 145 of the income tax act which provides that Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. In view of this, we do not find any infirmity in the stand of the assessee of offering interest income from Kisan Vikas Patra on cash basis. In view of this we direct the assessing officer to delete the addition of ₹ 2 38007/– as well as interest from core molding of ₹ 9 0377/– amounting in all to ₹ 366618/- on account of interest income chargeable to tax under income from other sources.
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