2014 (4) TMI 1269

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....R DR. S.T.M. PAVALAN, JM: This appeal filed by the Assessee is directed against the order of the Ld.CIT(A)-23, Mumbai dated 16.11.2011 for the Assessment Year 2007-08. 2. In Grounds No. 1 to 3, the assessee has agitated the action of the Ld.CIT(A) in making enhancement of the income taxable under the head income from house property without giving any reasonable opportunity of being heard to ....

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....lmia reported in 125 ITR 134, adopted notional rent of the property at 7% of its value and accordingly worked out the income from house property. On appeal, the Ld.CIT(A) by relying on the decision of the Tribunal in the case of ITO Vs. Chem Mech Pvt. Ltd. (2002) 83 ITD 427 directed the AO to calculate the ALV of the property by taking 8.5% of the total investment in the property. Aggrieved by the....

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....ordingly, Grounds No. 1 to 3 are allowed for statistical purpose. 3. Grounds No. 4 & 5 relate to the disallowance of 10% of telephone expenses and disallowance of 10% of vehicle expenses partly confirmed by the Ld.CIT(A) on the 20% disallowance made by the AO on the said expenses. 3.1 Having heard both the sides and perused the material on record it is observed that the said ad hoc disallowa....