Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 1202 - AT - Income TaxAddition on account of notional rental income on unsold stock u/s 23(a) - whether calculation of notional rental income on commercial property is outside the scope of section 23(1)(a)? - HELD THAT:- In the case in hand a show-cause notice for cancellation of lease was issued on 25.8.2013 and ultimately lease of plot was cancelled vide order dated 31.12.2015, therefore, we find force in the submission of learned AR of the assessee that after issuance of show-cause notice for cancellation of lease on which building was developed, the assessee was not entitled to let out occupied/constructed portion. Therefore, we find force in the submission of the learned AR that after issuance of show-cause notice the assessee was not entitled to let out the property. Hence, taxing notional income of unoccupied portion of building on the basis of deemed annual letting value is not justified by the AO. Hence, we direct the AO to delete the disallowance. Considering the fact that we have accepted the contention of learned AR that the assessee was legally not entitled to let out the property. Appeal of the assessee is allowed.
|