TaxTMI 
TaxTMI 
2018 (3) TMI 1091
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....1. ii) The authority below failed to appreciate the reduced rent for the purpose of Annual Letting Value (ALV) from the angle of commercial expediency and erred in assessing on the basis of initial 4 year old rent agreement with alleged 10% increment as per standard practice which is arbitrary, unjustified and uncalled for. iii) The Authority below filed to appreciate the fact that real income has to be taxed and in the facts of the case the income has been assessed notionally which is based on surmise and conjecture. iv) That in the facts of the case the CIT(A) also erred in considering the annual value @ 17 lakhs per annum applicable for FY 2014- 15 on the resumption of business activity but rejecting the same @ 25000/- per month....
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....se notice and held that assesse has taken the rent in cash and to avoid the tax liability the rental value has been substantially reduced. As per the normal practice in the rental arrangement and as proposed in the show cause notice, AO assessed the monthly rental of the assesee company at Rs. 2,99,475/-. Accordingly, the addition of Rs. 23,05,950/- was made to the taxable income of the assessee i.e. Rs. 2,99,475 x 12 = 35,93,700 - (30% for repairs) 1078110 = 2515590 - (already declared) 210000 = 23,05,590) and assessed the income at Rs. 25,62,680/- vide order dated 18.03.2015 passed u/s. 143(3) of the I.T. Act, 1961. Against the assessment order dated 18.3.2015, assessee appealed before the Ld. CIT(A), who vide his impugned order dated 16/....
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....nnot compare rent for unused premise (vacant premise) with rent for premise in use. However, the AO did not accept this explanation and went ahead with computation as proposed in the show cause notice and held that assessee has taken the rent in cash and to avoid the tax liability the rental value has been substantially reduced. As per the normal practice in the rental arrangement and as proposed in the show cause notice, AO assessed the monthly rental of the assesee company at Rs. 2,99,475/- and made the addition of Rs. 23,05,950/- to the taxable income of the assessee and in Appeal Ld. CIT(A) has partly allowed the appeal of the assessee. I find there is no merit in the case of assessee in justifying any reduction in the ALV of the proper....