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2016 (5) TMI 1085 - ITAT MUMBAI

2016 (5) TMI 1085 - ITAT MUMBAI - TMI - Income from House Property - ALV computation - Held that:- Whether the flat was habitable or not during the impugned assessment year is a question of fact and can be determined only after appreciation of evidences for which the authorities below may need to make necessary enquiries to appreciate the entire factual matrix. The computation of ALV is to be based on the provisions of Section 23 of the Act and Hon’ble Bombay High Court in the case of CIT v. Tip .....

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n accordance with the principles of natural justice in accordance with law. We order accordingly. - Decided in favour of assessee for statistical purposes. - I .T.A. No. 4919/Mum/2014 - Dated:- 21-4-2016 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Shri Behari Lal For The Revenue : Shri Anu Krishna Aggarwal,Addl. CIT ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee, being ITA No. 4919/Mum/2014, is directed against the .....

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nafter called the Tribunal ) read as under:- The grounds of appeal hereunder are without prejudice to one another; 1) On the facts and circumstances of the case as well as in Law the Hon ble CIT(A) has erred in a. He has erred in upholding the action of the AO to compute the income from House Property disregarding the fact that the said property was not in habitable condition. b. Upholding the action of the AO to compute Annual Value of Vacant Property by applying 8.5% of the Cost of the said pr .....

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in law, the appellant be given such relief or relief s as prayed for. 3. The brief facts of the case are that the assessee is an individual and derives income from trading and investment in shares and securities. 4.During the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Act, it was observed by the AO that the assessee has shown fixed assets which inter-alia comprised of Residential property at Juhu and residential property at Kripanidhi , which were not used for th .....

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hich was vacant during the previous year relevant to the assessment year 2010-11 as deemed let out property. The AO relied upon the orders of the Tribunal, Mumbai in the ITO v. Chem Mech Private Limited reported in (2002) 83 ITD 427(Mum.) and computed 8.5% of the book value of the vacant property appearing in books as Annual Value for the purposes of Section 23(1) of the Act and computed ₹ 24,42,973/- as annual value of the said flat. The AO allowed standard deduction u/s 24(a) of the Act .....

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at JVPD Scheme, Mumbai was lying vacant for the entire year. The assessee submitted that he made submissions before the AO that the assessee got the possession of the flat in June 2008 and the said flat was not in habitable condition and the furniture work was going on in the said flat which was incomplete till 31.03.2010 and also continued up-to 31.03.2011. The flat was purchased with intention to gift to his son for his residence. Since the flat was not in habitable condition and furniture wo .....

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dard deduction u/s 24(a) of the Act and computed ₹ 17,10,081/- as income from house property of the assessee with respect to Kripanidhi flat . The assessee submitted before the CIT(A) that during the year, the flat was not in habitable condition as the work was being carried out i.e. basic furniture and fittings, civil works, electrical fittings , plumbing work, interior work etc and that the substantial work has been carried out during the year under consideration. The assessee submitted .....

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143(3) of the Act by the Revenue for assessment year 2009-10 and no annual value was charged. The assessee relied upon the decision of Tribunal , Mumbai in the case of Bhawanji Kunverji Haria v. DCIT and the decision of Tribunal, Amritsar in the case of Shyam Sunder Behl v. ACIT 99 TTJ (Asr.) 1147. The CIT(A) held that the assessee has not made any application under Rule 46A of the Income Tax Rules, 1962 for admission of any additional evidence and order of the AO was confirmed/sustained by the .....

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and fixture, civil works, electrical fitting, plumbing work, interior work etc was going on in this flat during the previous year relevant to the assessment year and also in subsequent year. The said fact was brought to the notice of the AO and the CIT(A) and evidences were submitted which are not considered by the authorities below and the said flat is treated as deemed to be let out and ALV is computed and income from house property is brought to tax . The ld counsel submitted that the flat wa .....

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are placed at paper book filed with the Tribunal and also purchase agreement for buying the said flat in June 2008.The assessee also submitted that during the assessment year 2009-10, the Revenue did not made any addition to income of the assessee towards the deemed let out flat at Kripanidhi in the assessment framed u/s 143(3) of the Act , vide orders dated 05-12-2011, which is placed in paper book filed by the assessee with the Tribunal. The assessee relied upon decision of the Tribunal , Mum .....

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Corporation of the said flat is placed at page 45 paper book filed with the Tribunal.The assessee submitted that this was also brought to the notice of the CIT(A). The assessee relied upon the decision of DCIT v. Shripal S Morakhia in ITA no. 4620 & 4621 /Mum/1996 ; (2006) 7 SOT 0609(Mum.Trib.). 8. The ld. DR relied on the orders of the authorities below. 9. We have heard the rival contentions and perused the material on record including the case laws relied upon by both the parties. We have .....

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he assessee purchased the Kripanidhi flat in June 2008 and got the possession of the flat in June 2008 (document for purchase placed in paper book filed with the Tribunal) and it is contended that the flat was not in habitable condition and the furniture ,civil, plumbing , electrical , interior work etc. was going on in the said flat which was incomplete till 31.03.2010 and also continued up-to 31.03.2011. It is claimed by the assessee that the assessee made submissions before the authorities be .....

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