https://www.taxtmi.com/caselaws?id=195534 For computation of annual value under Section 23(1)(b) of the Income-tax Act, 1961, where actual rent exceeds municipal ratable value, notional interest on security deposit or advance rent cannot be added to house property income. The annual value must be determined on the basis of the actual rent position under Section 23(1)(b), and the presence of a refundable deposit does not justify a deemed interest adjustment. This position follows the earlier Bombay High Court view in Commissioner of Income Tax v. J.K. Investors (Bombay) Ltd., which rejected inclusion of notional interest in the house property computation. en-us Wed, 30 Nov 2011 00:00:00 +0530 Thu, 02 Nov 2017 18:25:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=195534 For computation of annual value under Section 23(1)(b) of the Income-tax Act, 1961, where actual rent exceeds municipal ratable value, notional interest on security deposit or advance rent cannot be added to house property income. The annual value must be determined on the basis of the actual rent position under Section 23(1)(b), and the presence of a refundable deposit does not justify a deemed interest adjustment. This position follows the earlier Bombay High Court view in Commissioner of Income Tax v. J.K. Investors (Bombay) Ltd., which rejected inclusion of notional interest in the house property computation. Case-Laws Income Tax Wed, 30 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=195534