Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 207 - AT - Income TaxIncome from house property - ALV determination - self occupied property or not - property under construction - ex-parte order - HELD THAT:- as the aforesaid “final possession letter” was never filed by the assessee before the A.O, therefore, the said verification was indispensably required to be done on his part in order to verify the authenticity of the aforesaid claim of the assessee. Accordingly, finding no infirmity in the order of the CIT(A) in context of the issue under consideration, we uphold his view. Seeking determination of ALV property as Nil as self occupied property - Held that:- the A.O while giving effect to our aforesaid directions shall make necessary verification as to whether the aforesaid property viz. Vora Apartment, Ghatkopar, during the year under consideration i.e A.Y. 2009-10 was under the self-occupation of the assessee, or not. Working out the ALV of his property at Wanworie, Pune, on the basis of the ‘municipal valuation’ - HELD THAT:- As is discernible from the orders of the lower authorities, we find, that the A.O without placing on record any supporting material had after estimating the rate of rent in respect of the property under consideration @ ₹ 20/- per sq. ft. worked out the ALV of the same at ₹ 3,38,160/-. We are unable to persuade ourselves to subscribe to the aforesaid methodology of estimation of the ALV by the A.O. In fact, we find substantial force in the claim of the assessee that the ALV of the aforesaid property ought to have been worked out as per its ‘municipal rateable value’. Our aforesaid view is fortified by the case of CIT-12 Vs. Tip Top Typography [2014 (8) TMI 356 - BOMBAY HIGH COURT] . Accordingly, we restore the matter to the file of the A.O who is directed to work out the ALV of the aforesaid property viz. Wanworie, Pune, after taking cognizance of the aforesaid judgment of the Hon’ble High Court of Bombay in the case of Tip Top Typography Unearned income from let out house property - HELD THAT:- it is the claim of the assessee that the property under consideration had during the year remained let out only for a period of 8 months, and thus, for the said reason the rent for the remaining 4 months was not accounted for as a part of his income in the return of income. As the CIT(A) had in all fairness directed the A.O to re-compute the total income from the property at Mahape, Navi Mumbai, as per the facts on record, therefore, no infirmity does emerge from the said direction. Deemed dividend u/s 2(22)(e) - having 22.11% shareholding - proportionate amount - an advance or loan to to any concern in which such shareholder is a member or a partner and in which he has substantial interest - HELD THAT:- the amount of ₹ 60,50,119/- received by M/s Nishitech System Pvt. ltd. from M/s Sanitech Engineers Pvt. Ltd., as rightly observed by the lower authorities, was clearly hit by the provisions of Sec. 2(22)(e) of the Act. Accordingly, we are of the considered view that the lower authorities had rightly concluded that an amount of ₹ 13,37,681/- i.e the proportionate amount of the ‘accumulated profits’ (as on 01.04.2008) of the lender company viz. M/s Sanitech Engineers Pvt. Ltd. worked out on a pro-rata basis of the 22.11% shareholding of the assessee with M/s Nishotech Systems Pvt. Ltd. was assessable as ‘deemed dividend’ u/s 2(22)(e) in the hands of the assessee.
|