Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 677 - AT - Income TaxIncome from house property - Estimation of notional rent for the flat at Navi Mumbai - HELD THAT:- As clear that assessee has duly informed the fact that agreement entered into the by the assessee for the purchase of said flat was cancelled hence, there was no question of assessing any deemed notional rent for the flat, which was not at all in the possession of the assessee. We set aside the orders of authorities below and direct that addition in this regard should be deleted. Annual letting value of yashodeep flat at a municipal rateable value - assessee's plea that the said flat was not habitable and was in a ruinous condition was very much before the Ld. CIT(A) - HELD THAT:- CIT(A) noted the plea that when the concerned house property was not in a position to be let out there cannot be any deemed notional rent for the same. For this proposition, he noted the reference by the assessee to several ITAT decisions - CIT(A) chose to display scant regard for judicial discipline. He did not at all refer whatsoever to the ratio emanating from the ITAT decisions. But, simply referred to the provision of the concerned section and Hon'ble Bombay High Court decision in case of Tiptop typography [2014 (8) TMI 356 - BOMBAY HIGH COURT]. The order of Ld. CIT(A) is without any application of mind. There is no discussion whatsoever as to where the act mandates that if a flat is inhabitable and in a ruinous condition notional rent should be computed thereon and imposed upon the assessee. The ITAT decisions referred by the assessee despite being noted has been ignored by the CIT(A). For all the above reasoning including the lack of application of mind by the CIT(A) and the scant regard to the judicial discipline the order of Ld. CIT(A) is set aside and the notional rent addition in this regard is directed to be deleted. Annual letting value of the flats at 6% of the flats - solitary plea of the assessee in this regard is that the notional rent should be restricted to the municipal ratable value - AO has levied 8% of the cost as notional rent and CIT(A) has restricted the same to 6% - HELD THAT:- We fail to understand as to why the CIT(A) has chosen again to exhibit his scant regard to the judicial discipline and not follow the Hon'ble Bombay High Court decision in the case of Tiptop topography. In the said decision Hon'ble Bombay High Court has expounded that municipal ratable value in an accepted norm for considering the rental value unless the AO shows by some material that the rent offered by the assessee is a manipulated figure. We are again anguished and wonder why the Ld. CIT(A) chose to ignore the Hon'ble Bombay High Court decision - we direct that following the precedent from Hon'ble Bombay High Court as above the rental value should be limited to the municipal ratable value in this regard.
|