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TMI Blog2018 (9) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... we set aside the finding of the CIT(A) on this issue and restored the matter back to the file of the AO who shall re-compute the income assessable under the head income from house property in terms of the direction of the above said case. - I.T.A. Nos.386/M/2018 And 389/M/2018 - - - Dated:- 7-9-2018 - SHRI B. R. BASKARAN, AM AND SHRI AMARJIT SINGH, JM For The Assessee : Shri Prakash K. Jotwani For The Department : Shri N. Hemalatha (DR) ORDER PER AMARJIT SINGH, JM: The assessee has filed the above mentioned appeals against the different order passed by the Commissioner of Income Tax (Appeals)-10, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the assessment year 2008-09 2011-12. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 29.03.2015. In response to the notice, the assessee filed its return of income on 17.08.2015 declaring loss to the tune of ₹ 1,05,649/- which the assessee had filed earlier. Thereafter, notices u/s 143(2) of the Act dated 31.07.2014 and 142(1) of the Act dated 10.09.2015 were issued and served upon the assessee. On the request of the assessee, the reasons recorded for the reopening of the case was given to the assessee. AO invoked the provision of Section 27(iii)(b) of the I.T. Act and held that the assessee was deemed owner of the property, therefore, assessed the rental income as income from house property and raised the addition to the tune of ₹ 374023/-(annual rented value of the premises 334318- 30%). The total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12-13 respectively dated 15.06.2018, therefore, in the said circumstances, the ground of the assessee is liable to be allowed interest of justice. However, on the other hand, the Ld. Representative of the Department has refuted the said contention. Before going further, we deemed it necessary to advert the finding of the Hon ble Tribunal on record: - 11. We have carefully considered the rival submissions. As our aforesaid discussion shows, the short-point for our consideration is as to whether the Assessing Officer was justified in rejecting the value declared by the assessee and instead, determining the annual value of the property for the purposes of Sec. 23 of the Act based on estimation arrived at by him, having regard to the two i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required to carry out necessary investigations and inquiries. It is further prescribed that the Assessing Officer shall have cogent and satisfactory material in his possession which indicate that the parties have concealed the real position . It has been further explained that there must be definite and positive material to indicate that the parties have suppressed the prevailing rate . If we were to examine the case made out by the Assessing Officer in the instant in the background of the above reasoning laid down by the Hon ble Bombay High Court, it is found that there is no allegation, much less any positive material 47. ............................He must have cogent and satisfactory material in his possession and which will indica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise or similar permissible process he is bound to disclose the material in his possession to the parties. He must not proceed to rely upon the material in his possession and disbelieve the parties. The satisfaction of the Assessing Officer that the bargain reveals an inflated or deflated rate based on fraud, emergency, relationship and other considerations makes it unreasonable must precede the undertaking of the above exercise.................... Therefore, on the aforesaid reasoning, the action of the Assessing Officer is liable to be set-aside. Apart therefrom, we find that the Assessing Officer has straightaway based his estimation on the rates found on his inquiry without establishing the similarity of the arrangement. As pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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