TMI Blog2024 (4) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and, therefore, AO grossly erred in taking market value of the assets from the valuation report. We do not find any reason to interfere with the findings of the CIT(A). Ground stands dismissed. Addition on account of notional rental value - AO found that market value of the constructed property is far more than what has been stated by the assessee and taking 8% as annual rental value as per the agreement, thus made addition - HELD THAT:- We find that the assessee has computed its rental income as agreed with the lessee and annual lettable value is also justified using average rent charged in nearby area at Noida. We, therefore, do not find any merit in taking notional rental value on the fair market value of the constructed property. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without appreciating the relevant facts brought on record by the AO in para 4.2 of the assessment order. 3. (i). The Ld. CIT(A) has erred in law and on facts in holding that the AO erred in taking market price of construction as notional rental income instead of actual cost of construction without appreciating the facts brought on record by AO in this regard. (ii). The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,65,39,595/- made by the AO on account of unexplained investment u/s 69 of the Income-tax Act, 1961 in the construction of building without appreciating the facts brought on record by AO. 4. The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 33,41,966/- made by the AO on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, the Assessing Officer grossly erred in taking market value of the assets from the valuation report. We do not find any reason to interfere with the findings of the ld. CIT(A). Ground stands dismissed. 7. Second item is the addition of Rs. 33,41,966/- being addition on account of notional rental value. 8. The underlying facts in this issue are that the assessee has constructed a building for school on the leasehold institutional plot of Noida Authority. In the sub-lease deed, it is mentioned that monthly lease rental shall be 8% per annum on total investment made by the assessee on construction of second building which included all fixtures and other assets in proportion to the area handed over. 9. The assessee has returned rent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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