TMI Blog2012 (8) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... a S. Puri for the Appellant. Rajesh Arora for the Respondent. ORDER K.D. Ranjan, Accountant Member These appeals by the Revenue in the case of two different assessees arise out of separate orders of CIT(A)-III, New Delhi. These appeals were heard together and for the sake of convenience are disposed off by this common order. 2. The main ground of appeal which is common in all the three asstt. years in the cases of Mrs. Uma Beriwala and Shri Vinit Beriwal are reproduced as under :- "1. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 15,00,000/- made by the Assessing Officer on the Annual Letting Value on account of notional interest on interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest on the deposit is not actual rent received or receivable. Therefore, notional rent computed by the AO can neither be determining factor nor a component to be taken into consideration for determining the annual value for assessing the income from house property. Under Section 23(1)(a) what is expected to be done is to decide fair rent for which the property is expected to be let from year to year which can be done either on the basis of fair rent fixed under the local municipal corporation laws or under the Delhi Rent Control Act, but certainly not by considering any notional income being the interest on security deposit received by the owner of the property. The assessee placed reliance on the decision of Hon'ble Delhi High Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on interest free security deposit can not be considered while determining the annual letting value of the property. He also placed reliance on the decision of Hon'ble Delhi High Court in the case of Moni Kumar Subba ( supra ) for the proposition that notional interest on interest free security deposit cannot be considered a criterion for determining the Annual Letting value of the property . Ld. AR of the assessee relying on decision of Hon'ble Supreme Court in the case of Mrs. Sheila Kaushish v. CIT [1981] 131 ITR 435/7 Taxman 1 has submitted that standard rent determinable under provisions of rent control law would be annual value even though standard rent has not been determined. Ld. AR of the assessee therefore supported the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this provision is expected to make any inquiry as to what would be the possible rent that property might fetch. Thus, if he finds that the actual rent received is less than the fair market rent because the assessee has received an abnormally high interest free security deposit and because of that actual rent received is less than the rent which the property might fetch, he can undertake necessary exercise in that behalf. However, the notional interest on the interest free security cannot be taken as the determinative factor to arrive at a fair rent. The provisions of section 23(1)(a) do not mandate this. In a taxing statue, it would unsafe for the court to go beyond the letter of the law and try to read into the provision more than what is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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