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2016 (11) TMI 208 - DELHI HIGH COURT

2016 (11) TMI 208 - DELHI HIGH COURT - [2016] 389 ITR 373 - Applicability of provision of Section 22 and 23 to the properties owned by the Assessee - Held that:- As far as the decision in Chennai Properties & Investments Ltd v.CIT (2015 (5) TMI 46 - SUPREME COURT) wherein noted that the main object of the Appellant Assessee in that case was “to purchase or otherwise acquire and hold the properties known as “Chennai House” and to let out such properties and to make advances upon the security of l .....

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OURT) that letting out of properties “was not part of business and object of the Assessee”. - Consequently, this Court is not persuaded to accept the plea of the Assessee that in view of the decision in Chennai Properties & Investments Ltd (supra) the Court should reconsider the correctness of its ruling in CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra). - Decided against assessee. - ITA 442/2003 - Dated:- 26-7-2016 - S. Muralidhar And Najmi Waziri, JJ. For the Appellant : Mr. P. Ro .....

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er on the facts and in the circumstances of the case the ITAT was justified in law in deleting of the addition of ₹ 80,49,504/- by holding that the provision of Section 22 and 23 was not applicable to the properties owned by the Assessee? B. Whether on the facts and in the circumstances of the case the ITAT was correct in law allowing depreciation at the rate of 100% on shuttering material and tabular scaffolding in spite of the fact that each shuttering was incapable of being used indepen .....

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ade by learned counsel for the Assessee to urge that in view of the judgment of Supreme Court in Chennai Properties & Investments Ltd v. CIT 373 ITR 673 (SC), the decision of this Court in CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra) requires to be reconsidered. 4. In the first place it requires to be noticed that the same question squarely arose before this Court in CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra). In para 5 of the said judgment the Court noted the .....

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ITR 353 (SC). The alternative submission was that the flats owned by the Assessee could not be taxed on the basis of their annual letting value ( ALV‟) notionally because the owner is an occupant and such occupation is in the course of, and for the purpose of business, as a builder . 6. In CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra) this Court negatived both the above submissions of the Assessee. After discussing the decisions of the Supreme Court in Sultan Bros.(P) Ltd. v .....

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not on the actual receipt (which never arose in this case) but on a notional basis, i.e. ALV and that it is therefore not sanctioned by law, in the opinion of the Court is meritless. ALV is a method to arrive at a figure on the basis of which the impost is to be effectuated. The existence of an artificial method itself would not mean that levy is impermissible. Parliament has resorted to several other presumptive methods, for the purpose of calculation of income and collection of tax. Furthermor .....

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income from the property should in fact be treated as business income. The Court held in para 14 as under: As far as the alternative argument that the assessee itself is occupier, because it holds the property till it is sold, is concerned, the Court does not find any merit in this submission. While there can be no quarrel with the proposition that "occupation" can be synonymous with physical possession, in law, when Parliament intended a property occupied by one who is carrying on bus .....

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