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2015 (6) TMI 978 - ITAT BANGALORE

2015 (6) TMI 978 - ITAT BANGALORE - TMI - Computation of annual letting value and vacancy allowance - Held that:- The assessee produced the receipt of the property tax as well as the summary of the property tax due demand in respect of the property at Jubilee Hills, Hyderabad before the CIT(A), but the CIT(A) has not considered the Municipal valuation of the said property while deciding the issue. As it is manifest from the assessment order, the AO accepted the annual letting value based on the .....

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re-do the exercise of computation of annual let out value, after considering the property tax payment record filed by the assessee.

Vacancy allowance claimed by the assessee, we note that the assessee never let 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 proper .....

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perty, there is no mention of any construction or any structure on the said property purchased by the assessee. We note that the assessee had sold the property vide sale deed dated 2nd December, 2008 and as per the schedule of the property, being part of the sale deed dated 2nd December, 2008 the property is described as ‘House No.”. Therefore, prima facie it appears that what is sold by the assessee is a constructed property. However, it is a matter of verification and examination. Accordingly, .....

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not produced the bills of the expenditure. - Decided in favour of assessee for statistical purpose. - IT(IT)A No.26(Bang) 2014 - Dated:- 22-6-2015 - SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER For the Appellant : Shri R.B.Krishna, Advocate For the Respondent : Shri P. Dhivahar, JCIT O R D E R PER SHRI VIJAY PAL RAO, JM This appeal by the assessee is directed against the order dated 26- 03-2014 of CIT(A)-IV, Bangalore for the assessment year 2009-10. The asses .....

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ons 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 were vacant. Assessee declared the annual let out value of properties at Bangalore at ₹ 30,000/-, w .....

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essee had sold the property during the year under consideration. The assessee challenged the action of the AO before the CIT(A)and also claim vacation allowance in respect of property at Jubilee Hills, Hyderabad. The CIT(A) has confirmed the action of the AO, while passing the impugned order. 3. Before us, learned counsel for the assessee has submitted that the AO has accepted the Municipal value in respect of other properties but estimated the annual letting value in respect of the property at .....

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ng 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 discus .....

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ee in para-3 of the order as under; 3. It was seen from the return of income that the assessee is the owner of the following property and has estimated the annual let out value of the immovable property as under; Property addresses ALV (a) Property at B-3, II Floor, Krishn a garden apartment, Kaval Byrasandra, Bangalore (Coownership with Sri Aravapalli Bindu) 24,000 (b) Property at 1933, 5th Cross, Sarakki, Bangalore (C0- ownership with Sri Aravapalli Bindu) 30,000 (c) Property at No.43,39th Cro .....

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essee being Municipal value as under; The assessee was asked to furnish copies of the returns of assessment of the 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 pr .....

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e assessment of the property. The claim of the assessee in respect of the property at Jubilee Hills, Hyderabad was rejected by the AO on the ground that the assessee has not produced the proof of Municipal valuation in respect of the said property. The assessee produced the receipt of the property tax as well as the summary of the property tax due demand in respect of the property at Jubilee Hills, Hyderabad before the CIT(A), but the CIT(A) has not considered the Municipal valuation of the said .....

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e this issue of determination of annual letting value in respect of the property at Jubilee Hills, Hyderabad to the record of the AO to re-do the exercise of computation of annual let out value, after considering the property tax payment record filed by the assessee. 9. As regards the vacancy allowance claimed by the assessee, we note that the assessee never let out the property at Jubilee Hills, Hyderabad. Therefore, the question of remaining the property vacant during the year for the purpose .....

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f ₹ 1.20 Crores and claimed cost of improvement of ₹ 1,50,000/-lacs for FY: 2003-04 and ₹ 2.00 lacs for FY: 2004-05. The AO disallowed the claim of the assessee on the ground that the assessee failed to discharge its onus to prove the genuineness of the claim, as the assessee has not produced any evidence in support of such expenditure on account of cost of improvement. The CIT(A) had concurred with the findings of the AO. 11. Before us, learned counsel for the assessee has sub .....

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a house. Thus, the learned counsel for the assessee submitted that the assessee has accepted the cost of construction and claimed the same as cost of improvement. The learned counsel has further submitted that the assessee has explained the authorities below and submitted that this expenditure was incurred by the assessee through one Mr.Prabhanjan Rao, whose affidavit has been filed by the assessee in confirmation of the said expenditure. The AO issued summons u/s 131 to Shri prabhanjan Rao, an .....

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