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TMI Blog2013 (12) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer, despite the fact that provisions of Rent Control Act are not applicable to the assessee's case and ignoring the fact that the annual value determined u/s. 23(1((a) of the I.T. Act, 1961 is much higher than the income declared by the assessee. 2. On the facts and in the circumstances of the case and in law, the, Ld. CIT(A) erred by placing reliance on the decision of the Hon'ble Bombay High Court in the case of J.K. Investors Ltd. (248 ITR 723) though it was a case governed by Section 23(1)(b) of the I.T. Act, 1961 and clearly distinguishable on facts from the assessee's case where the addition was made by the Assessing Officer u/s. 23(1)(a) of the I.T. Act." 3. The facts relevant for disposal of the issue on hand ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articularly in view of the fact that there is no evidence or material on record to prove that the actual rent received is less than the notional annual value. The learned CIT(A) therefore deleted the addition made by the AO. In this regard he relied upon the decision of the Hon'ble Bombay High Court in the case of J.K. Investors Ltd. 248 ITR 723, which, in turn, refers to section 23(1)(b) of the Act. 6. Aggrieved by the order of the CIT(A), the Revenue is in appeal before us. The learned D.R. submitted that the learned CIT(A) was not justified in relying upon the decision of the Hon'ble Bombay High Court (supra) since the court was concerned with interpretation of the provisions of section 23(1)(b) of the Act and in fact specifically refra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act the Bench concluded, in the light of the decision of the Coordinate Bench of ITAT Mumbai, that notional interest on security deposit should not be taken into consideration in the circumstances of the case. The learned counsel therefore submitted that the ITAT Mumbai Benches have been consistently taking the view that in the circumstances of the case notional interest should not be taken into consideration for the purpose of computing annual value under section 23(1)(a) of the Act and hence the ultimate order of the learned CIT(A) of deleting the addition suffers from no infirmity. 8. We have carefully considered the rival submissions and perused the record. As could be noticed from the decisions citied by the learned counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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