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2018 (4) TMI 1177 - AT - Income TaxIncome from house property - Municipal lettable value disregarded - enhancement made in the annual letting value - valuation was based on the expert opinion of the Government Registered valuer and market trend - rejecting the municipal lettable value by AO - Held that:- As referring to the decision of the Tip Top Typography (2014 (8) TMI 356 - BOMBAY HIGH COURT) wherein held that the municipal lettable value cannot be disregarded straight away, for disregarding the same there must be cogent and reliable material. AO must not make guess work or act on conjecture and surmise. It was also expounded that the enquiries that the Assessing Officer can make would be for ascertaining the going rate, he can make a corporative study and make analysis. Transaction of identical nature can be ascertained by obtaining the requisite details. Now we examine as to what was the cogent material available to the Assessing Officer in rejecting the municipal lettable value. We find that except for the surmise, there was no material whatsoever The said valuer had clearly mentioned that he has never visited the said property under reference. In such circumstances, by no stretch of imagination, it can be said that the Assessing Officer had any material much less cogent at that to disregard the municipal lettable value. - Decided in favour of assessee Reopening of assessment - disallowance on account of addition to rental income - case was reopened on the basis of information obtained by AO from Shri Santosh Kumar, government registered valuer - Held that:- A reading of the said information clearly shows that the said information cannot at all be said to be a information on the basis of which it can be said that there was escapement of income. The said valuer has clearly stated that this should not be construed as his report or speech. The said valuer has clearly stated that he has neither visited nor inspected the said property. Thus said report can by no stretch of imagination be said to be a cogent material warranting reopening. Earlier assessment has been done u/s. 143(3) and the lettable value returned has been accepted. Now AO is changing his opinion on the basis of that said letter. In our considered opinion, this very much amounts to change of opinion, not permissible under law. Re-assessment in this case is not valid. Disallowance u/s. 14A in the normal provisions of the Act - Held that:- No cogent reason has been submitted before us that the consultant charges paid to the auditors are not indirect administrative charges. Hence, we dismiss this ground raised by the assessee.
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