TMI Blog2010 (10) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... her sources - Held that:- rent paid by the assessee for the said property to LIC of India can by no stretch of imagination be considered as expenditure incurred for earning the said income. - As it is incomprehendible as to how can one take a premises at rent of Rs.257543/- to earn lease rental income of Rs.1,44,000/- - ITA No. 1803/Del/2010 - - - Dated:- 22-10-2010 - C.L. Sethi, Shamim Yahya, JJ. P.S. Kanodia, AR for the Appellant Banta Devi Naorem, Sr. DR. for the Respondent ORDER Shamim Yahya: This appeal by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) dated 01.02.2010 pertaining to assessment year 2005-06. 2. The issue raised is that Ld. Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determination of ALV of same property had arisen in the case of R.K.K.R. Industries Pvt. Ltd. and ITAT 'C' Bench vide order dated 29th December, 1997 had issued the following directions:- "10.6 We have peruse the various precedents cited before us. We have considered the facts that emerge from the records and stated at the time of hearing. In our opinion, in the present case, Municipal valuation only could give true indication as to the correct ALV of the property in question. Accordingly, we set aside the impugned order on this count and direct the assessing officer to determine the ALV of the property with reference to its rateable value as determined by the Municipal Corporation. The value determined by the NCMC was stated to be unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty is to be taken as if it is under self occupation and by applying provision of Section 6(1) and and of Delhi Rent Control Act. If NDMC has determined the rateable value of the property then the said be adopted as basis for ALV of property for the purpose of section 22/23 of IT Act. if no assessment has so far be made under Rent Control Act or by NDMC then assessment of ALV be made determined as directed by the Hon'ble Delhi High Court in the order dated 23rd September, 2003. The matter with above directions is restored to the file of the Assessing Officer in all the assessment years." 3.2 Respectfully following the above precedent, we set aside the this issue to the files of the Assessing Officer to follow the directions as above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that it does not establish that expenses are wholly and necessarily incurred for earning such have not been established. The genuineness of such expenses incurred have also not been proved with sufficient documents in the shape of bills, vouchers. Books of accounts have also not been produced for examination. Hence Assessing Officer held that in the absence of any supporting documents or agreements, the expenses incurred and rental paid for the same property against which lease income have been shown is disallowed. Assessing Officer further opined that the lease rent showed by the assessee was very low and he proceeded to estimate the same at Rs.6,00,000/- per annum. Hence, he treated the rental income received under the head 'income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses etc. claimed against that income can be allowed only u/s 57(iii) of the Act. Therefore, even otherwise the estimation of lease rent at Rs.6 lakhs as done by the Assessing Officer cannot be upheld. However, once income is assessed under the head "income from other sources", then expenses etc. claimed against that income can be allowed only u/s 57(iii) of the Act, only such expenses which are laid out or expended wholly and exclusively for the purpose of making or earning of such income can be allowed. In the instant case, Assessing Officer has observed that these expenses could not be established by the appellant as incurred wholly and exclusively for the purpose of earning this income and genuineness of such expenses also could not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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