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TMI Blog2021 (12) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... for the sake of convenience. 2. The grounds raised by the assessee are as under:- ITA No.4727/Del/2018 (A.Y. 2013-14) "1. The L'd Commissioner erred in law and facts in sustaining the addition made by AO on the notional rent amounting to Rs. 3,90,600. 2. Having regard to the facts the Ld CIT(A) has not appreciated the facts with help of documentary evidence and did not address himself on the issue of notional rent in para 6 of the order dated 26-04-2018 3. Having regard to the facts that the assessee is not professionally qualified and educated person with limited man-force the L'd CIT(A) has sustained the disallowance of Rs. 2,18,929 under the head car expense in absence of log book. It is prayed that the appellant b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilding in Delhi was purchased by the assessee for expansion of the existing business. During FY 2012-13, the assessee could not start the business as the land was leasehold. The assessee first had to apply for conversion of land and building from leasehold to freehold and, accordingly, during the FY 2012-13 the assessee took necessary step for its conversion and paid the conversion charges to DDA. All payments totaling to Rs. 1,35,17,732/- incurred for conversion have been debited in the building account and nothing has been claimed as revenue. It was accordingly requested that notional rent should not be taken. However, the AO was not satisfied with the explanation given by the assessee. He noted that for AY 2009-10 addition was made on sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty and not a free hold property. As per the Ld. AR the first lacuna referred above came to light when the appellant wanted to convert the property from lease hold to free hold. As per the Ld. AR it is because of these reasons that the property could not be let out and hence ALV should not be invoked. 8. I have considered the submissions of the appellant and also perused the paper book submitted by the appellant. The first contention of the appellant that the property is lease hold and hence not fit for further lease lacks any merit as almost more than 50% of the properties in Delhi have traditionally been lease hold. These leases are for 99 years and are akin to a permanent title to the property and are in no way a hindrance to letting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied on the order of the CIT(A). 9. We have considered the rival arguments made by both the sides, perused the orders of the AO and the CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find, the AO, in the instant case, determined the ALV of the property at Rs. 46,500/- for AY 2013-14 and Rs. 51,200/- for AY 2014-15 after considering the ALV of Rs. 35,000/- per month which was the benchmark value for FY 2009-10 after the order of the CIT(A) and after considering the incremental rise in rent. We find, the ld.CIT(A) upheld the action of the AO, the reasons of which have already been reproduced in the preceding para. It is the submission of the ld. Counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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