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TMI Blog2012 (5) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... al investment made in the said property. 3. The assessee in the present case is a company which is engaged in the business of purchase and sale of shares, debentures, letting out the property held as part of investments, holding shares/debentures for the purpose of earning dividend, interest etc. The return of income for the year under consideration was filed by it on 30-10-2002 declaring a loss of ₹ 42,72,62,472/-. During the course of assessment proceedings, the AO noticed that the assessee has let out its properties to various tenants belonging to Jindal group under the lease agreement and the total rent received by the assessee from the said properties in the year under consideration was ₹ 2,54,400/-. He also found that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai under the Rent Control Act. Since the assessee had made total investment of ₹ 3,41,67,031/- in the properties, the standard rent was worked out by the learned CIT(Appeals) at ₹ 29,04,195/- being 8.5% of ₹ 3,41,67,031/- and the AO was directed by him to take the same as annual letting value of the assessee s property for the purpose of computing income under the head Income from house property . Aggrieved by the same, the assessee has raised this issue in the present appeal preferred before the Tribunal. 4. We have heard the arguments of both the sides on this issue and also perused the relevant material on record. Although the learned DR has contended that the basis taken by the learned CIT(Appeals) to determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee s property being more than the actual rent received by the assessee for the purpose of computing income under the head Income from house property . Ground Nos. 1 and 2 of the assessee s appeal are accordingly allowed. 5. As regards the common issue raised in ground Nos. 3 and 4 of the assessee s appeal relating to attribution of proportionate interest expenses to earning of dividend income and accordingly allowing exemption only in respect of net dividend amount as against the claim of the assessee to allow such interest is legitimate business expenses u/s 36(1)(iii), it is observed that this issue is also squarely covered by the order of the Tribunal dated 15-12-2003 (supra) for assessment year 1999-2000 wherein it was held b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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