TMI Blog2016 (3) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... no amount has been shown for which property might be reasonably expected to be let. Thus the assessee’s claim has no tenability as neither property is self-occupied nor its reasonable rental ALV is offered for tax and at the same time a claim of deduction of interest is made. Since the assessee has not complied with any of these statutory conditions, the lower authorities have rightly disallowed the proportionate interest wrongly claimed by the assessee as allowable. - Decided against assessee - ITA No. 965/JP/2013 - - - Dated:- 27-1-2016 - SHRI R.P. TOLANI, JUDICIAL MEMBER For The Assessee : Shri Rajeev Sogani, CA For The Revenue : Shri Rajinder Singh, JCIT- DR ORDER PER R.P. TOLANI, JM This is an appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Hon'ble Supreme Court in the case of Mst. Katiji (supra), the delay is condoned. 3.1 Brief facts of the case are that the assessee purchased two flats at Mall Shree Residency, Plot No.29, Mission Compound, Ajmer Road, Jaipur for a total consideration of ₹ 54,86,020/- on which a housing loan of ₹ 40.50 lacs from India Bulls Financing Ltd. The assessee let out flat No. G-102 situated at Ground Floor but Flat No. B-2 situated at basement could not be let out. The assessee while furnishing the income from house property claimed deduction of interest on the entire housing loan. The AO held that Flat No. B-2 was not let out by the assessee and no rent was received. Therefore, the AO disallowed proportionate interest of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,760) is disallowed and added back to the total income of the assessee. In view of the facts discussed above, it is clear that the assessee has claimed excess deduction towards payment of interest under the head of Income from House Property, therefore, a total of ₹ 3,06,158/- (Rs. 82,602+Rs. 2,23,556/-) is disallowed and added back to the total income of the assessee. 4. During the course of assessment proceedings, it was noticed that the assessee has claimed depreciation of ₹ 2,74,301/- on the two residential flats purchased during the year under consideration i.e. flat No.G-102 on ground floor and flat No. B-2 in the basement situated at Mall Shree Residency, P.No.29, Mission Compound, Ajmer Road, Jaipur. Further it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or receivable is less than the annual letting value, the sum received or receivable shall be the annual value. Since all the conditions mentioned above, for the applicability of Section 23(1)(c), were fulfilled by the assessee, the annual value of Flat B-2 was rightly taken by the assessee as Nil. Reliance in this regard is placed on the following judicial pronouncements. (i) Premsudha Exports (P) ld vs. ACIT 110 ITD 158 (Mum) (ii) ACIT vs. Drr. Prabha Sanghi 139 ITD 504 (Del.) (iii) DLF Office Developers vs. ACIT 23 SOT 19 (Del.) It is contended that there being no rent earned; annual value of Flat B-2 was rightly taken as Nil in view of Section 23(1)(c ) and at the same time the assessee was right in claiming deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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