2017 (5) TMI 111

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....-07. 2. The only common grounds of appeal except for the figures in ITA Nos.3117/Mum/2015 and 3118/Mum/2015 for the assessment years 2006-07 and 2002-03 respectively are as under : "1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in directing to delete the addition of Rs. 35,00,000/-, even though the assessee has not brought anything on record to show that the rent determined in its case is more than sum which might reasonably be expected from year to year under section 23(1)(a) of the I.T.Act- 1961. 2. The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. 3. The appellant craves leave to amend or alter any round o....

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....issue has been considered by the Coordinate Bench in the case of DCIT Vs. Dinesh M Shah in ITA No.2562/Mum/2015 dated 22.02.2017, wherein on similar circumstances, the Assessing Officer considered 10% interest free deposit as part of rental income on account of letting out of properties while computing ALV. The Coordinate Bench following the decisions of the Hon'ble Bombay High Court in the case of CIT Vs. Tip Top Typography (supra) and CIT Vs. JK Investors [248 ITR 723] held as under : 13. We have heard the rival submissions, perused the orders of the authorities below and find that this aspect of the matter has been considered by the ld. CIT (Appeals) and deleted the addition made towards notional interest while computing Annual Lettin....

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....he incidence of tax hands of the assessee. In cases where the security deposit is abnormally high i.e. many times the rental income, because of which the rental fixed is abnormally low, such a decision could be justified. However, in the present case, since the security deposit is not out of proportion of the rental income and it is not the allegation of the Assessing Officer that due to the security deposit the rental fixed has been lowered with a view to decrease the incidence of tax, adding notional interest on such interest free deposit, cannot be justified. The case laws cited by the Authorised Representative also support this view. In view of the facts of the case, mechanically adding notional interest @10% on security deposit is ther....

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..... Counsel for the Assessee submits that the Coordinate Bench of the Tribunal in the case of Saif Ali Khan Vs. ACIT in ITA No.1653/Mum/2009 and in the case of Sharmila Tagore, 150 taxmann 4 held that maintenance charges paid to housing society have to be deducted even while arriving at annual letting value of property u/s 23 of the Act. 10. The Ld. DR submits that in the Assessee's own case, the matter has been remanded to the Assessing Officer in the appeals for the assessment years 2006-07 and 2002-03 against the original assessments made u/s 143 (3). 11. We have heard the rival submissions, perused the orders of the authorities below. We also find from the order of the Coordinate Bench in Assessee's own case in ITA Nos.7210/Mum/2007....