9911796707
TMI Blog2015 (6) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... perty at K.K.Nagar, Chennai ad the disposed off property at Jubilee Hills, Hyderabad without any basis. 2. The disallowance of vacancy allowance is opposed to law and to facts". 3. The disallowance of 50% of cost of improvement is opposed to law and to facts specially wherein an affidavit in this regard has been produced. 4. For these and other reasons that may be adduced at the time of hearing this appeal may be allowed. 2. Ground no.1 & 2 are regarding computation of annual letting value and vacancy allowance. The assessee is a Non-resident India and earned income from house property as well as capital gain from the sale of property. During the year under consideration, the two properties one at Chennai and the other at Hyderabad w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of municipal value of the property. Thus, learned AR has submitted that the annual letting value if at all adopted in case of Hyderabad property of the assessee, the same should be by considering the municipal value of the property. He has further submitted that since the property remains vacant during the year, the assessee is also entitled for vacation allowance. 4. On the other hand, learned DR has submitted that the assessee has not produced any evidence of payment of property tax to show the Municipal value of the property before the AO. Further, the CIT(A) has also not discussed any additional evidence filed by the assessee. 5. As regards the vacation allowance, learned DR submitted that when the property was never let o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property submitted to the Municipal/Corporation authorities. The assesee has furnished the copies of the return only in respect of the property at J.P.Nagar and Kaval byrasandra, Bangalore. Hence the assessee's claim relating to these two properties is acceptable keeping in view the judgments relied on by the assessee. However, similar view cannot be taken in respect of the other property at Jubilee Hills, Hyderabad as the assesee has not produced the proof of Municipal valuation in respect of the properties at Jubilee Hills, Hyderabad. In the absence of production of Municipal valuation the annual value of the properties is computed as under u/s 23(1)(a)". 8. Thus, it is clear that the AO accepted the estimation of annual let ting value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et out the property at Jubilee Hills, Hyderabad. Therefore, the question of remaining the property vacant during the year for the purpose of vacancy allowance does not arise. Accordingly, the claim of the assessee is devoid of any merit, when the assessee never let out the property in question. Hence, the claim of vacancy allowance is rejected. 10. Ground no.3, regarding disallowance of cost of improvement, while computing the capital gain. The assessee is a joint owner with her husband Shri Aravapalli Bindu of property no.71, Jubilee Hills, Hyderabad. During the year assessee sold the said immovable property for a consideration of Rs. 1.20 Crores and claimed cost of improvement of Rs. 1,50,000/-lacs for FY: 2003-04 and Rs. 2.00 lacs for F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entary evidence as he was not aware that it was necessary to keep this evidence to claim the benefit. Thus, the learned counsel for the assessee submitted that when there is construction on the property in question, subsequent to the acquisition, then the claim of the assessee cannot be denied by treating the same as not genuine. 12. On the other hand, learned DR has relied upon the orders of the authorities below and submitted that the assessee has not filed any documentary evidence to show that any expenditure incurred on the improvement of the property in question. Therefore, in the absence of any documentary evidence the claim of the assessee cannot be accepted. 13. We have considered the rival submissions and the material available o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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