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5. The next issue relates to the notional rent assessed by the AO in respect of two flats, namely, flat No. 102 and flat No. 602. The assessee explained before the AO that flat No. 102 is used as a sample flat which the assessee is required to show to the prospective customers and the other flat No. 602 was used as customer contact center cum marketing site of the project. The AO did not accept the same and accordingly computed the notional rent of these two flats at Rs.13,20,000/- and assessed the same. The Ld.CIT(A) accepted the explanations of the assessee and accordingly deleted the same.

5.1. We heard the parties and perused the record. The submissions of the assessee that flat No. 102 was kept as sample flat and flat No. 602 was used as marketing office have not been disproved by the AO. There should not be any dispute that it is necessary for a real estate developer to keep a sample flat and a marketing office in order to promote his project. Accordingly, we are of the view that both these flats were used by the assessee for the purpose of business only, in which case, there is no requirement under the Act to compute notional rent. Accordingly, we are of the view that the Ld.CIT(A) was justified in deleting the notional rent computed by the AO.