TMI Blog2011 (2) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... nity to the assessee to substantiate the municipal value of the property - The grounds raised by the assessee are accordingly allowed for statistical purpose. Ad-hoc Disallowance - business expenditure in cash - It is the well settled proposition of law that for claiming any business expenditure, the onus is always on the assessee to substantiate with evidence to the satisfaction of the Assessing Officer that such expenses are genuine and incurred wholly and exclusively for the purpose of business - Payments have been made in cash and the vouchers are self made; therefore, disallowance of 10% on ad-hoc basis is reasonable and does not call for any interference - The assessee submitted that the Assessing Officer has not pointed out any mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has shown notional income of Rs. 2000/only. The Assessing Officer conducted independent enquiry and came to the conclusion that this flat will get monthly rent of Rs. 25,000/-. The Assessing Officer confronted the same to the assessee and drew the attention of the assessee to the provisions of sec. 23(1)(a) of the Act, according to which the annual value of the property is the sum for which the property could reasonably be expected to let out from year to year. Rejecting the various explanations given by the assessee and distinguishing the various decisions cited before him, the Assessing Officer determined the annual value of the said property at Rs. 3 lacs. After allowing statutory deduction u/s 24 he added a sum of Rs. 2,10,000/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I wonder why the Assessing Officer could have not accepted the figure of Rs. 12,000/- per month admitted by the appellant through their letter dated 8th Dec 2009 that comes to more than 12% of the investment through he has disclosed exactly 12% of Rs. 4,00,000/-in the return. Since the appellant had himself stated in the letter dated 8.12.2009 addressed to the Assessing Officer during the course of assessment proceedings that the impugned flat of the appellant could have fetched compensation in case given on leave and licence not more than Rs. 10,000/- to Rs. 12,000/- p.m, the Assessing Officer is directed to take Fair Market rent for the impugned flat to be Rs.12,000/- p.m in place of Rs. 25,000/- for which no adverse material is availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of the property, which is not let out, the municipal value would be a proper yardstick for determining the annual value of the property. 6.1 I find the coordinate Bench of the Tribunal in the case of Parkpaper Industries P Ltd (supra) at para 12 of the order has held as under: "12. Learned counsel for the assessee relied on several other judicial pronouncements in support of his contention that the municipal value should be the basis of determining the annual value. We are not making reference to those decisions, since, in our opinion the aforesaid pronouncement of Hon'ble Bombay High Court considers the decisions of Hon'ble Calcutta High Court which in turn has considered the law laid down by the Hon'ble apex Court on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to substantiate the municipal value of the property and decide the issue in light of the decision of the Tribunal cited above. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purpose. 8. In grounds of appeal no.3, the assessee has challenged the order of the CIT(A) in sustaining the disallowance of Rs. 18,614/- made by the Assessing Officer on ad-hoc basis out of various expenses. 9. After hearing both the parties, I find the Assessing Officer disallowed a sum of Rs. 18,614/- being 10% of the following expenses for want of full details since most of the expenses claimed are made in cash with self made vouchers: Sl.No. Description Amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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