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TMI Blog2020 (9) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions which have been explicitly mentioned in the Income Tax Act can only be brought to tax under the deeming provision but not any other notional or hypothetical income not envisaged by the Act. Hence, we hereby direct that the addition made by the Assessing Officer on account of notional income on the security deposit cannot be held to be legally valid. Appeal of the assessee is allowed. - ITA No. 300/Del/2020 - - - Dated:- 3-6-2020 - Ms. Sushma Chowla, Vice President And Dr. B. R. R. Kumar, Accountant Member For the Assessee : Sh. Rohit Tiwari, Adv. For the Revenue : Sh. Anupam Kant Garg, CIT DR ORDER PER DR. B.R.R. KUMAR, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same may be cancelled. 6. That on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in confirming the action of the Ld. AO in initiating penalty proceeding u/s 271AAB of the Act, the same may be kindly be cancelled. 3. At the outset, the ld. AR submitted that only ground no. 4 which is a substantial ground would be argued and other grounds are not being pressed. 4. The assessee owns a property in DLF, Phase-II, Gurgaon against which he has received a security deposit of ₹ 5 ,29,55 ,200/-for leasing the premises. During the year, the no rent has been offered to tax and on enquiry, it was found that the said property has been sold for ₹ 2.75 crores in the year 2013-14, hence no income from renta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sh. Anupam Kant, ld. Departmental Representative argued that this matter has to be looked in the overall scheme of things and reasons leading to the search seizure operation conducted on 07.04.2016 at the premises of the assessee u/s 132 of the Income Tax Act, 1961. He argued that the ld. CIT (A) has rightly confirmed the addition owing to the bene fit reaped by the assessee on account of enjoyment of the security deposit lying with him even after the sale of the premises of DLF , Phase-II which has been leased out initially. It was argued that the premises of the assessee was leased out to one entity namely, M/s. HHG Global Pvt. Ltd. and received interest free deposit of ₹ 5.29 crores. The Directors of the company M/s HHG Global P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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