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TMI Blog2014 (7) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, 94, 745/- being annual letting value of the adjacent self occupied house property treating it as a separate house property. 3. On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming addition of Rs. 3, 36, 000/- as annual value of the self occupied house property. 4. With out prejudice to ground no. 2 and 3, the Ld CIT (A) erred in confirming the action of A. O in adopting the notional rental income @ 12% of the cost of acquisition which is unrealisable and much on higher side as compared to the actual rent received in the market 5. On facts and circumstances of the case and in law, the Ld, CIT(A) has erred confirming addition of net receipts of Rs. 1, 02, 886/-on surrender of LIC Pension policy agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Kirloskar Chillers Pvt. Ltd and there was a requirement of the lessee that the lessor should be a corporate entity, that the premises were rented through CPSPL, that the rental income was duly offered to tax at maximum rate in company's return. After considering the submissions of the assessee and the assessment order, FAA held that the assessee was the owner of the House Property that was let out to M/s Kirloskar Chillers Pvt. Ltd M/s Kirloskar Chillers Pvt. Ltd, that the income had to be assessed in the hands of the assessee and not in the hands of CPSPL. 2. 2. Before us, Authrorised Representative(AR)stated that the rent was shown in the account of CPSPL, that M/s. Kirlosker Chillers Pvt. Ltd. had insisted that rent would be paid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnual letting value(ALV) of the self occupied house property. During the assessment proceedinsgs, the AO found that the assessee had two residential flats at Hurrah Nirmal Lifestyle i. e. Flat No. 1301 and 1302 and value of each flat was Rs. 23, 18, 400/-. He held that as per provisions of Act assessee could take only one flat as SOP and another flat had to be considered as deemed let out. Assessee submitted that though there were two agreements however both were joint property and same were being used as single unit. But, the AO did not accept the contention of the assessee and held that existence of two agreements confirmed that both were separate properties, that in one property first name was of assessee whereas in another property firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hysical verification of the property through his inspector to find out as to whether the residential unit is one or not. He would decide the issue after hearing the assessee. Ground no. 2 is decided in favour of the assessee, in part. 4. Next ground of appeal pertains to addition of Rs. 3, 36, 000/- as annual value of the self occupied house property. During the assessment proceedings, AO found that the assessee had also offered income from a residential property at Sun Glow located at Powai at Rs. 14, 698/- by taking municipal ratable value of the property at Rs. 35, 010/-. AO was of the opinion that the annual value had to be computed according to section 22 as the said property was not let out during the year. Considering the location ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted by the assessee was as pert law. As the property remained vacant , so, adopting municipal ratable cannot be termed incorrect method of calculating House property income. Therefore, reversing the order of the FAA, we decide ground no. 3 in favour of the assessee. 5. Last ground of appeal is about addition of Rs. 1. 02 lakhs on surrender of LIC pension policy. During the course of assessment proceedings, AO observed that assessee had received an amount of Rs. l, 08, 044/-by surrendering lifetime pension policy and life insurance policy from ICICI Prudential life insurance. As per details filed, AO noted that in case of life insurance premium annual premium was less than 20% of the sum assured and premiums had been made for more than t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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