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2016 (7) TMI 942 - ITAT PUNE

2016 (7) TMI 942 - ITAT PUNE - TMI - ALV of the property remained vacant for the whole year - Held that:- As from a reading of another provision i.e. subsection (3) of section 23 of the Act, where the legislatures in their wisdom have used the word ‘house is actually let’. This also shows that the expression ‘property is let’ cannot mean actual letting out of the property because had it been so, there was be no need to use the word ‘actually’ in sub-section (3) of section 23 of the Act. Applying .....

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urt ) relied upon by the revenue cannot be read in a manner that if the property remains vacant throughout the year, section 23(1)(c) do not apply at all more so when the property was let out in proceeding or subsequent year. Therefore, in the totality of the circumstances and having regard to the provisions of the Act, we are of the view that the ALV of the property at Dande Towers which remained vacant for the whole year has to be assigned Nil value in terms of section 23(1)(c) of the Act. Acc .....

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e assessee has raised the following Grounds of Appeal :- 1. The learned CIT (Appeal)-I, Nashik has erred in not interpreting properly the provisions of section 23(1)(c) of the Income Tax Act, 1961 in ascertaining the Annual Letting Value of the properties at (i) Prathamesh Plaza, Nashik and (ii) Dande Towers, Nashik Road. 2. The learned CIT (Appeal)-I, Nashik has erred in not considering the Annual Letting Value as per Municipal Authorities (Standard Rent) in the situation of the property being .....

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peal ex-parte qua the assessee after hearing the respondent/Revenue on merits in terms of Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963. 4. As per the Grounds of Appeal, the assessee is aggrieved by the order of the CIT(A) in inter-alia not interpreting the provisions of section 23(1)(c) of the Act in perspective for ascertaining the Annual Letting Value (ALV) of the properties. 5. The relevant facts concerning Ground no. 1 are that the assessee is an individual and inter-alia owns .....

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urse of appellate proceedings, the assessee seems to have agreed for ALV to be estimated at ₹ 40,000/- per annum. The CIT(A) accordingly substituted gross annual rental value at ₹ 40,000/- as per concession granted by the Assessee. Since the ALV has been substituted by the said amount agreed by the assessee and in the absence of relevant facts concerning the ALV in previous and subsequent years, we abstain from interfering with the conclusion of the CIT(A) arrived on the basis of con .....

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se of Vivek Jain vs. ACIT, (2011) 337 ITR 74 (AP). 7. We have carefully considered the orders of the authorities below and material placed on record. We observe that the Assessing Officer has denied the application of section 23(1)(c) of the Act for determination of ALV on the ground that clause (c) does not apply to a situation where the property has either not been let out at all during the previous year or even if let out, was not vacant during the whole or any part of the previous year. As p .....

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be let out and remained vacant for the whole year. In support of this proposition, decisions of the Tribunal in the case of Premsudha Exports (P) Ltd. & Presmshree gems (P) Ltd. vs. ACIT, 110 ITD 158 (Mum-Trib.) and Shakuntala Devi vs. DDIT in ITA No.1524/Bang/2010 order dated 20.12.2011 were relied upon before CIT(A). We notice from the order of the CIT(A) that the property was actually let out in the financial year 2006-07 to M/s IDBI Home Finance Ltd. at an actual rental value of ₹ .....

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erty remaining vacant for the whole year has to be computed with reference to section 23(1)(c) of the Act. This sub-section deals with a situation where the property remains vacant for the whole year. Section 23(1)(c) of the Act as relevant in the context is set out for ready reference as under :- [Annual value how determined. 23. (1) For the purposes of section 22, the annual value of any property shall be deemed to be- (a) xxxxx (b) xxxxx (c) where the property or any part of the property is l .....

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employed by him) in determining the annual value of the property of that previous year in which such taxes are actually paid by him. [underline is ours] 9. Section 23(1)(c) by its literal wording include a situation where a property which was vacant during the whole year by saying that when a property is let and was vacant during the whole or part of the previous year actual rent received or receivable by the owner is less than sum referred to in clause (a), the amount so received or receivable .....

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rty and took appropriate efforts in letting the property but ultimately failed to let the same, the actual rent received from it will have to be considered as Zero being less than the sum referred in section 23(1)(a) of the Act. The revenue has not brought anything on record in rebuttal to say that the property has not remained vacant for the whole year or was self occupied in some manner. As noted above, the fact that the assessee had on the previous occasion in the preceding year rented the pr .....

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