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2019 (11) TMI 983 - AT - Income TaxAddition on account of notional rent in respect of vacant property of the assessee - Assessee explained that since the property was lying vacant during the relevant period, no rental income was disclosed - AO estimated rental income of the property at 6% of the capital value and made addition as notional rent - HELD THAT:- In the present case it is an undisputed fact that the property in question was let out in the past, during the period relevant to assessment year under appeal the property was lying vacant for the entire year and hence, no actual rent was received by the assessee. Consequently, the assessee did not offer any rental income to tax. In the given facts, the provisions of section 23(1)(c) of the Act get attracted. The assessee during the Financial Year 2015-16 has purportedly rented out the premises and has offered the rental income to tax. A perusal of the statement of profit and loss account for the year ended 31/03/2016 furnished by the ld. Authorized Representative of the assessee reveal that the assessee has received rental income of ₹ 2,10,000/-. Assessee has also furnished copy of the assessment order dated 18/12/2018 passed under section 143(3) of the Act for assessment year 2016-17. No addition on account of rental income/ notional rental income has been made by the Assessing Officer in the assessment order. Thus, rental income offered to tax has been accepted by the Assessing Officer. In the past as well the propeprpty under question was let out. It was during the period relevant to assessment year under appeal that the property was lying vacant for which reasons were given by the assessee. In the peculiar facts of the case we are of the considered opinion that no addition on account of notional rent is warranted. The Co-ordinate bench in the case of Sachin R. Tandulkar [2018 (8) TMI 847 - ITAT MUMBAI] in somewhat similar circumstances after applying provisions of section 23(1)(c) of the Act accepted rental income from the vacant property as ‘nil’. In view of the similarity of facts, we find merit in the submissions of the assessee. Accordingly, the impugned order is set-aside and the appeal of assessee is allowed.
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