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2018 (3) TMI 1091 - AT - Income TaxAnnual Value of House Property determination - as per AO assessee has taken the rent in cash and to avoid the tax liability the rental value has been substantially reduced - Held that:- As per the normal practice in the rental arrangement and as proposed in the show cause notice, AO assessed the monthly rental of the assessee company at ₹ 2,99,475/- and made the addition of ₹ 23,05,950/- to the taxable income of the assessee and in Appeal Ld. CIT(A) has partly allowed the appeal of the assessee. There is no merit in the case of assessee in justifying any reduction in the ALV of the property. The assessee has contended that any tenant would like to buy a property at the value taken by the AO than taking it on rent. But the very fact that property was let out @ 30,00,000/- / 2,000/- i.e. 1500 per sqmtrs. and rent was also paid for the period of 01.4.2008 for certain months, the claim is belied. The very receipt of rent justifies ALV to be based on such rent, in absence of anything to the contrary. CIT(A) has rightly observed that the property was again let out on resumption of activity @ 17 lakhs per month, the annual value was taken at that rate, if evidence to that effect is produced. CIT(A) held that the AO may give necessary relief in re-computation of rental income, subject to verification of such rental receipt in later years, which does not need any interference on our part, hence, we uphold the action of the Ld. CIT(A). - Decided against assessee.
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