2015 (7) TMI 1176

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....is consolidated order. Appeal wise adjudication is given in the following paragraphs of this order. 2. The issue raised by the Revenue in its appeal ITA No.5468/M/2012 to considering of the notional interest on interest free deposits given by the tenant for the purpose of computing the ALV of a property u/s 23 of the Act. The ground reads as under: "Whether on the facts and in the circumstances of the case and in law, the Ld CIT (A) has erred in directing the AO not to take notional interest of Rs. 14,04,00,000/- on interest free deposit of Rs. 78 Crs received by the assessee while computing the annual letting value of the property for the purpose to work out income from house property under section 23 of the Act." 3. The issue raised i....

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....tantial question of law „c‟ relates to the computation of ALV based on the notional interest computed on the interest free deposits kept with the property owner. The said substantial question of law (a) and (c) read as under:- "(a) Whether on the facts and in the circumstances of the case and in law Hon‟ble ITAT was right in directing the Assessing Officer to accept the income from house property declared by the assessee adopting the municipal ratable value as Annual Letting Value of its property? (c) Whether on the facts and in the circumstances of the case and in law, Hon‟ble ITAT was right in dismissing the revenue‟s appeal without appreciating the fact that the rent was undervalued on the ground of inte....

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....s, has been decided by the coordinate bench of this Tribunal in favour of the assessee in the case of Reclamation Reality India Pvt Ltd (supra) and since the said decision has been rendered by the Tribunal relying on and following the judgments of Hon‟ble Apex Court and the Hon‟ble jurisdictional High Court, we are of the view that the judicial propriety and judicial discipline require us to follow the same. Accordingly, respectfully following the said judicial pronouncement, we modify the impugned order of the Ld CIT (A) on this issue and direct the AO to accept the income from house property declared by the assessee adopting the municipal ratable value as annual letting value of its property. Ground no.1 of the assessee‟....