2010 (1) TMI 894

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....ne the delay as the mistakes in filing the appeal late are bonafide. 5. Ground no.1 and 2 in all these appeals relate to directing the AO to assess the property income on the basis of rental value declared by NMMC. 5.1 The AO made an addition of Rs.7,39,200/- for AY 2000-01. The AO added this income on the estimated rate of 8% of investment made in the property. In fact the properties i.e. two bungalows owned by the assessee were occupied by the partners. No rent was shown from these partners. The AO by observing that since the assessee has not offered any income u/s 22/23 of the Act and also due to the fact that the assessee is a partnership firm and cannot have a self occupied property, income from the property has to be brought to ....

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....ere before us. 7. The ld DR placed reliance on the order of the AO and on the other hand, the ld counsel of the assessee placed reliance on the order of the CIT(A). It was also submitted that the issue is squarely covered by the decision of the Hon'ble Bombay High Court whereby it has been held that where no rent is received from the occupant then notional rent can be taken on the basis of MRV. 8. After considering the rival submission and perusing the relevant material on record, we do not find any infirmity in the findings of the ld CIT(A) that the value of the rental income has to be computed by taking into account the rental value as declared by NMMC rather taking the value by estimating the rent on the basis of investment made in....

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.... of the department which is against reducing the addition made on account of sub-contract expenses from Rs.20 lacs to 3 Lacs; from 5 lacs to 2 lacs form 9.25 lacs to 3 lacs and from 4 lacs to 1 lac for AYs 2000-01 to 2003-04 respectively. 14. The AO made disallowance on account of sub-contract expenses @ 1% of the total expenses. These additions were made by the AO by observing in his order that the assessee has claimed sub-contract expenses at Rs.20,37,86,334/-. The assessee has deducted tax on sub-contractors translating to tax deduction on sub-contract payments totalling to Rs.13.41 crores. The AO was of the view that the assessee has not deducted tax on the balance amount. As per the monthly expense details filed by the assessee, it ....