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TMI Blog2016 (2) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 23(1)(c). Notional interest estimated by the AO on the security deposit received by the assessee, we notice that the AO has not made any enquiry to find out that the rent received by the assessee compels inclusion of the such notional income, which in turn could be determined only if it is shown that the rent received by the assessee together with the notional interest on the security deposit was less than the fair market value determined u/s 23(1)(a). See case of CIT Vs. Tip Top Typography [ 2014 (8) TMI 356 - BOMBAY HIGH COURT] . In view of the above, we do not find any infirmity in the decision rendered by Ld CIT(A) on this issue. Addition made u/s 41(1) - CIT(A) has given categorical finding that liability of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty. The rental income derived by it was declared under the head Income from House Property . The AO noticed that assessee had received rental income of ₹ 67,50,000/- for ten months and had also collected an interest free security deposit of ₹ 13,50,000/- from the tenants. The AO, however, took the view that the notional interest on interest free deposits should also be taken as part of Annual Letting Value (ALV). Accordingly, the AO estimated rental income of ₹ 6,88,500/- per month and accordingly, he determined the ALV at ₹ 82,62,000/-. It is pertinent to note that the AO computed ALV for the vacant period of two months also. 4. Besides the above, the assessee had also claimed various expenses and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We futher notice that there is no finding by the AO that the rent received by the assessee was less than the fair market value as per the requirement of sec. 23(1)(b) of the Act. It is also pertinent to note that the AO has determined the rental income in respect of vacant period also and the same is against the provisions of section 23(1)(c) of the Act. With regard to the notional interest estimated by the AO on the security deposit received by the assessee, we notice that the AO has not made any enquiry to find out that the rent received by the assessee compels inclusion of the such notional income, which in turn could be determined only if it is shown that the rent received by the assessee together with the notional interest on the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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