Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 588 - AT - Income TaxAddition on account of undisclosed income - estimation of rental income and chadawa income - Held that:- In so far as chadawa income is concerned, estimation made by the Assessing Officer is without any basis and without going into the fact that the assessee was entitled for chadawa once in 18 years and, therefore, there was no reason for estimating the chadawa income for the year in which the assessee was never entitled to receive chadawa income. Therefore, the addition on account of chadawa income is uncalled for and the ld. CIT(A) has rightly deleted the same. Rental income - other family members was residing in the temple premises - assessment made by the Assessing Officer that once the premises was rented out, the same must have been rented out in the earlier assessment years also - Held that:- No doubt, the basis of estimation of the rental income is the actual rent shown by the assessee as found in the rent agreement. What is taxed under the head ‘income from house property’ is the Annual Let Out Value [ALV] of the house property and the ALV is determined as per section 23 of the Act wherein it has been provided that the ALV shall be the sum for which the property might reasonably be expected to let from year to year or the actual rent received/receivable. Thus, in the case in hand, the ALV has been estimated on the basis of actual rent received by the assessee in subsequent assessment years. But, at the same time, there is no evidence on record which could suggest that the properties were actually let out in the earlier assessment years. But the ALV has to be taxed and, therefore, to this extent, we agree with the ld. DR. Since the letting out of the property was discovered during the course of search and seizure proceedings, therefore, in our considered opinion, the ALV of the properties have been rightly treated as income of the assessee. We, accordingly, set aside the findings of the ld. CIT(A) to this extent and restore that of the Assessing Officer. - Decided partly in favour of assessee.
|