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2018 (9) TMI 1687 - AT - Income TaxComputing the Annual Letting Value of the office premises at Nil u/s 23(1)(c) - Property remained vacant - applicability of Provisions of Sec. 23(1)(c) or determining the ‘annual value’ by pressing into service Sec. 23(1)(a) - Held that:- The usage of the term ‘Property is let’ in Sec. 23(1)(c) had purposively been used to exclude those properties from the ambit of the clause which are held by the owner for self occupation purposes, because even though the ‘annual value’ of oneself occupied property so chosen by the assessee is taken at Nil, however the ‘annual value’ of all the remaining self occupied properties are to be determined in terms of Sec. 23(1)(a) of the ‘Act’. Thus, to our understanding, though the term ‘Property is let’ used in Sec. 23(1)(c) is solely with the intent to avoid misuse of determination of the ‘annual value’ of self occupied properties by the assesses by taking recourse to Sec. 23(1)(c), however, the same cannot be stretched beyond that and the ‘annual value’ of a property which is let, but thereafter remains vacant for the whole year under consideration, though subject to the condition that the same is not put under self occupation of the assessee and is held for the purpose of letting out of the same, would continue to be determined u/s 23(1)(c). Assessee in the present case had rightly determined the ‘annual value’ of the property at Nil by taking recourse to Sec. 23(1)(c) of the ‘Act’. As in the case of the present assessee the property under consideration had remained let out for a period of 36 months, and thereafter though could not be let out and had remained vacant during whole of the year under consideration, but had never remained under the self occupation of the assessee, thus, no infirmity emerges from the computation of the ‘annual value’ of the said property under Sec. 23(1)(c) of the ‘Act’ by the assessee. - decided in favour of assessee.
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