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2019 (12) TMI 515 - ITAT JAIPURAddition of income - notional and estimated rent - deduction u/s 24(1) - HELD THAT:- As per books of account, this property was shown as a part of the fixed assets which means that the property was shown in the books of account as business assets of the assessee. Since the property was under construction, therefore, the same cannot be considered house property for the purpose of section 22 of the Act until and unless the construction of the house is completed in all respects - The AO has not considered the state of the building in question whether it is a bare structure without having all the basic amenities/ facilities and compared the same with another property which was let out on rent. Therefore, once the property in question is shown by the assessee as part of its fixed assets and it was used only for the stay of the security guard and driver of the assessee without charging any rent then said property cannot be assessed to income tax u/s 22 of the Act - the addition made by the AO on account of income from house is not justified and the same is deleted - in favor of assessee. Disallowance of expenses - repair and maintenance expenses - HELD THAT:- As regards the repairs and maintenance expenses incurred in respect of property bearing No. 125, Mahaveer Nagar-1, Kota, the AO determined the annual rental value and allowed deduction u/s 24 of the Act, however the said addition made by the AO to the income from house property is deleted and consequently the repairs and maintenance expenses to the extent of said property shall be capitalized as assessee has claimed that construction was not completed during the year under consideration - There are no reason to interfere with the order of the authorities below in disallowing the said of expenditure on account repairs and maintenance - decided against assessee. Appeal of the assessee allowed in part.
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