2012 (2) TMI 209

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s common order, for the sake of convenience. 2. The assessee is a film actor and film producer. The assessee preferred appeals before the Ld CIT(A) against the additions made by the assessing officer, but could not find favour. Hence the assessee is in appeal before us. 3. The first issue, which is common in all the four years, pertain to disallowance of a portion of car loan interest, car insurance and taxes towards personal use. In the assessment proceedings, the AO noticed that the assessee has disallowed 1/3rd of car expenses and car depreciation towards personal use. However, while computing the said disallowance, the assessee did not take into account the expenses incurred towards interest on car loan, car insurance and taxes. A....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... no disallowance is called for out of expenses incurred towards interest, insurance and taxes. Accordingly, we confirm the order of the Ld cita on this issue 4. The next issue which is urged in ay 2003-04 and 2004-05 relate to ad-hoc disallowance made by the AO on account of incomplete bills and vouchers. In the ay 2003-04, a sum of Rs.50,000/- was disallowed and in the assessment year 2004-05, a sum of Rs.3,08,000/- was disallowed. However, we notice that the assessee did not agitate the addition of Rs.50,000/- made in the assessment year 2003-04 before the ld. CIT(A) and hence, we decline to interfere with the ground raised in this regard. 4.1 In the assessment year 2004-05, the Assessing Officer has disallowed a sum of Rs.3,08,000/....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... regard. There cannot be any doubt that the annual value of the property has to be determined in accordance with the provisions of s. 23 of the Act. According to the said section, the annual value shall be deemed to be the sum for which the property might reasonably be expected to let from year to year. However, if the actual rent received or receivable is more than the actual rent, it shall be taken as annual value of the property. Thus, if the actual rent receivable is lesser than the fair market value of rent, then the fair market value shall be taken as the annual value of the property. In the instant case, the assessee has declared the annual value of the property at Rs.6500/- per month in the assessment year 2002-03. Having adopted th....