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TMI Blog2023 (9) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a self-occupied house property, but no rental/deemed rental income has been shown in computation of total income and show cause why the addition on account of deemed rental income should not be made - HELD THAT:- The value has been shown by the Ld. AO on the basis of decision passed in the case of Smt. Radha Devi Dalmia [ 1980 (3) TMI 62 - ALLAHABAD HIGH COURT] and already allowed standard deduction of 30% under Section 24(a) - Hence, in the absence of any assistance rendered by the assessee, we do not find any reason to interfere with the order passed by the Ld. AO and upheld by the Ld. CIT(A) impugned before us. Decided against assessee - Shri Waseem Ahmed, Accountant Member And Ms. Madhumita Roy, Judicial Member For the Appellant : None For the Respondent : Shri Ashish Kumar Pandey, Sr.D.R. ORDER PER Ms. MADHUMITA ROY - JM: The instant appeal at the instance of the assessee is directed against the order dated 28.01.2020 passed by the Ld. Commissioner of Income Tax (Appeals)-1, Rajkot (in short CIT(A) ) arising out of the assessment order dated 22.12.2018 passed by the DC/AC, Circle-1(2), Rajkot under Section 143(3) of the Income Tax Act, 1961 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Expenditure incurred in relation to income not includible in total income: 144 For the purpose of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act. ii. There is another thing also. On a careful reading of the provisions of the section 14A, it states that No deduction shall be allowed in respect of expense incurred by the assessee in relation to income which does not from part of the total income under this Act. It is submitted that sub section 1 of section 14A provides for disallowance of expenditure incurred by an assessee in relation to the income which does not form part of the total income under this Act, namely under the Provisions of The Income Tax Act. On a careful reading of this provision, this sub section makes it clear the disallowance has to be made in respect of expenditure incurred in relation to income which is totally exempt under the provisions of the Income Tax Act and not that income which is exempt in the case of particular assessee. In the present case, the firm of Nisan Export has paid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Finally, the Ld. CIT(A) relied upon the judgment passed by the Special Bench, Ahmedabad in the case of Vishnu Anant Mahajan vs. ACIT and upheld the disallowance made by the Ld. AO. 6. In the absence of any assistance rendered by the assessee, we do not find any reason to interfere with the order passed by the Ld. CIT(A). On the basis of judgment passed by the Special Bench, ITAT Ahmedabad, this ground of appeal filed by the assessee is found to be devoid of any merit and, thus, dismissed. 7. Second ground of appeal relates to the addition of Rs. 4,95,647/- under Section 23(4) of the Act. 8. The assessee has shown more than one residential properties. The assessee is staying at Mumbai being a self-occupied house property. However, no rental/deemed rental income has been shown in computation of total income and show cause, therefore, dated 17.12.2018 was issued as to why the addition on account of deemed rental income should not be made. The assessee replied to the show cause in the following manner: 1. I have a flat at Lalit Kunj, Mumbai which is occupied by my son and wife during the above year and I used to frequently visit my family at Mumbai. Therefore I consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under: Description of the property Value of the property as per the balance sheet of the assessee (In Rs. ) Deemed rent @7% of the value of the property as per balance sheet (In Rs. ) Less:Standard deduction of 30% u/s24(a) (In Rs) Taxable rent (In Rs) Flat at Anand Palce, Rajkot 14,75,700/- 1,03,299/- 30,990/- 72,309/- Flat at Suncity Pride 86,39,543/- 6,04,768/- 1,81,430/- 4,23,338/- Total taxable rent on the deemed let out property 4,95,647- Therefore, Rs. 4,95,647/- is added back to total income of the assessee the head Income from house Property for the year under assessment. 10. Before the First Appellate Authority, the assessee reiterated the stand taken before the Ld. AO. With the following observation, the Ld. CIT(A) upheld the addition made by the Ld. AO: In this ground the assessee has challenged the addition of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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