TMI Blog2011 (6) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. We have heard the parties. The assessee-company is the owner of the commercial office premises which is let out and assessee receives the rental income. The assessee has reduced the society charges of ₹ 1,95,308/- for the purpose of arriving at the net annual value (ALV) of the property. The assessee contended before the A.O. that the property tax and society charges are direct charges to be deducted from gross rent and those expenses are in the nature of earning the income. The A.O. was not impressed with the contention of the assessee and declined to give the society charges of ₹ 1,95,308/-. The assessee carried the issue before the Ld. CIT (A) but without success. Now, the assessee is in appeal before us. 4. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd maintenance expenditure. 7. We have heard the parties. There is no dispute about the fact that except the rental income and the interest-income, the assessee is not carrying out any business activity. The assessee has filed profit loss account and claimed some expenditure like Secretary Fees, accounting fees, income-tax proceedings fees etc. The A.O. declined to accept the plea of the assessee that these are recurring expenditures and accordingly they are to be allowed. The assessee carried the issue before the Ld. CIT (A) but without success hence he is in appeal before us. 8. We have heard the rival submissions of the parties and perused the records. The Ld. Counsel argued that these are the routine expenditures and assessee-co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come from house property . The assessee has let out its premises situated at 6th Floor, Peninsula Chamber, Lower Parel, Mumbai -13, which area is 12,056 Sq.ft. to M/s. Kotak Mahindra Old Mutual Life Insurance Ltd. (in short Kotak Mahindra) vide lease agreement dated 31.03.2003, on the monthly rent of ₹ 4,60,000/- and also taken interest-free deposit of ₹ 2.5 crores from the lessee M/s. Kotak Mahindra. The A.O. is of the opinion that as inerest free deposit is paid by the lessee/licensee, the rent payable to the assessee was reduced and rent greed between the parties is not true rent of the property as per the prevailing market rate. The A.O. did some research on the internet and found the prevailing market rates in the area in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason of extraneous consideration. (iv) Such ALV, however, cannot exceed the standard rent as per the rent control legislation applicable to the property. (v) If standard rent has not been fixed by the Rent Controller, then it is the duty of the assessing officer to determine the standard rent as per the provisions of rent control enactment. (vi) The standard rent is the upper limit, if the fair rent is less than the standard rent, then it is the fair rent which shall be taken as ALV and not the standard rent. 13. Both the parties agreed that the matter may be sent back to the file of the A.O. for fresh adjudication in the light of the principles and the guidelines laid down by the Hon ble High Court of Delhi (Full Bench) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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