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2017 (9) TMI 1146 - ITAT MUMBAIAddition u/s 23(1)(a) - deemed rent - vacant property / vacancy allowance - 3 properties not offered for tax under the head House properties - AR submitted that out of two flats treated as deemed let out, the flat no.2B was let out in 2003 but vacant since then and therefore the provisions of 23(1)(c) - Held that:- We find merit in the contention of the ld.AR that once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax resorting to provisions of section 23(1)(c) of the Act. The issue in the case of assessee is supported by the various decisions referred to and relied upon by the ld.AR in the case of Informed Technologies India Ltd (2017 (2) TMI 744 - ITAT MUMBAI). Tribunal direct the AO to delete the addition in respect of Otters flat No.2B by sustaining the addition in respect of second flat viz Peace Heaven. Accordingly, the ground taken by the assessee is partly allowed. Disallowance being 10% out of vehicle-telephone expenses - Held that:- We find that the ld.CIT(A) has passed a very reasoned order by upholding the disallowance at 10% of the total expenses on the basis of the decision in assessee’s own case in the assessment year 2006-07(supra). Since, the assessee has not furnished any details of expenses during the course of assessment proceedings before the AO or the CIT(A) and therefore the AO is not in a position to verify the expenses. Accordingly, we are inclined to uphold the order of the ld. CIT(A) on this issue. Accordingly, dismissed.
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