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2021 (10) TMI 956 - AT - Income TaxIncome from house property - ALV of property - addition in respect of three properties in Amritsar - these properties were vacant during the year and annual income should have been computed at nil under section 23(1)(c) of the Act - HELD THAT:- . After carefully perusing the provisions of section 22, section 23(1)(a) and section 23(1)(c) of the Act, we are of the considered view that the ALV of the property, which could not be let out during the year, would be nil in accordance with the provisions of section 23(1)(c) of the Act. The assessee is entitled for the vacancy of allowance in respect of the said properties and armed length price has to be assessed as rent received or receivable and not the amount for which the property is expected to be let out from year to year is to be considered for the purpose of assessing the ALV. In the present case since the properties have not been let out at all during the year, therefore the ALV has to be taken as nil. See M/S. METAOXIDE PVT. LTD. [2018 (4) TMI 1513 - ITAT MUMBAI] - thus we direct the AO to delete the addition made in respect of three vacant properties at Amritsar. Ground No. 1 is allowed. Addition of agricultural income declared by the assessee - In the A.Y. 2011-12, the assessee has declared income of ₹ 7,63,472/- and the AO has treated the 50% as agricultural income of the assessee and 50% was added to the income of the assessee and taxed accordingly - HELD THAT:- We find merit in the contention of the Ld. A.R. after perusing the assessment order for A.Y. 2011-12 wherein the AO has treated the agricultural income on the same basis. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to treat 50% as agricultural income and to treat the remaining 50% as regular taxable income. Accordingly, ground is partly allowed.
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