TMI Blog2019 (6) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... dend income as held by this Tribunal in REI Agro Ltd. [ 2013 (9) TMI 156 - ITAT KOLKATA] Income from house property - annual letable value of the house property which the assessee stated to have inherited from his mother on which the AO has calculated the annual letable value invoking sec. 22 and 23 - HELD THAT:- No inquiry was carried out by the AO before estimating the annual letable value of the house despite the assessee pointed out this fact to the AO that the house in question is an old house, which is in a dilapidated condition and so it is not habitable and therefore, the question of letting out of the property does not arise. In the interest of justice and fair play set aside the order of CIT(A) and restore the matter to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to explain as to why disallowance u/s. 14A of the Income-tax Act, 1961 (hereinafter referred to as the Act ) should not be made in the view of investment which is related to exempt income. In response, the Ld. AR of the assessee replied vide letter dated 19.01.2016 which has been reproduced by the AO at page 2 in his assessment order. And after considering the said reply, the AO observed that the Ld. AR of the assessee has presented an overall view of the matter but failed to file the specific utilisation of the loan received and interest paid thereon other than a mere statement that the entire loan funds taken were deployed in earning of taxable income . According to AO, thereby, the assessee failed to file any supporting documentary evi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 8D(2)(ii) of the Rules. For that we rely on the decision of the Hon ble Bombay High Court in CIT-vs.- Reliance Utilities Power Ltd. reported in 313 ITR 340 (Bom.). Further, in respect of disallowance under Rule 8D(2)(iii) the AO is directed to compute 0.5% on the investment on which the assessee earned dividend income as held by this Tribunal in REI Agro Ltd. 144 ITD 141. 5. The next issue is with regard to the annual letable value of the house property which the assessee stated to have inherited from his mother on which the AO has calculated the annual letable value invoking sec. 22 and 23 of the Act. According to assessee, the house is in dilapidated condition in a village situated in the State of Rajasthan which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property does not arise. Taking in to consideration the aforesaid facts, in the interest of justice and fair play, I set aside the order of Ld. CIT(A) and restore the matter to the file of AO to verify the contention of the assessee that the house in question is in a dilapidated condition and not habitable. The AO after making enquiries finds the contention of the assessee to be correct then no deemed provision of sec. 22 read with section 23 should be saddled on the assessee. If the contention of the assessee fails and the house is habitable then the AO to make reasonable annual letting value considering the location and rent which the house could fetch in that locality in accordance to law after hearing the assessee. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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