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2018 (2) TMI 1584 - AT - Income TaxDetermining the annual letting value of the property which was let out and disallowance of certain expenditure - Held that:- As seen from the order of the AO, he has not considered the issue in the correct perspective. The building is subject to let out only to a hotel business as it contains rooms and also restaurant. The ground floor and first floor building, having road frontage and using for show room purposes, may fetch a higher rent but that does not indicate that all the floors in the building will fetch the same rent. Therefore, adoption of ₹ 100/- per sq. ft., is not only arbitrary but also without any basis as well. Since the ratio of commercial rent received in ground floor with that of hotel property in earlier years is not available and since no other comparable rent details were placed on record, we are of the opinion that the matter requires re-examination by the AO, particularly keeping in mind the principles laid down by the Hon'ble Bombay High Court in the case of CIT Vs. Tip Top Typography (2014 (8) TMI 356 - BOMBAY HIGH COURT) relied on by assessee Assessee also offered other incomes, particularly rent on furniture and fixtures. Assessee also claimed service tax and other expenditure. Whether those incomes can be considered as part of house property income or has to be assessed separately either under the head ‘business’ or under the head ‘other sources’ also require re-examination by the AO. The allowance of various expenditure depends on the head under which incomes are assessed. - Decided in favour of assessee for statistical purposes.
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