TMI Blog2017 (3) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... t justified because if the cost of construction is not shown in books of account, the Assessing Officer is free to take necessary action for evasion of tax, if any, in that regard. However, construction expenses not recorded in books of account, cannot be a ground for assessing the rental income under the head “income from other sources” when the conditions of Section 22 of the Act for assessing the annual value of the property have been fulfilled by the assessee. By not recording construction expenses in books of account, the rights of ownership of the assessee over the property cannot be taken away and it remains the owner of the property. In view of the above discussion, we, therefore, direct the Assessing Officer to assess the rental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er years without any specification of the years. h) Directing the Assessing Officer to not allow such claim in succeeding years which is not in appeal and without considering the whole matter. 2. The facts in brief of the case are that during year under consideration, the assessee received rent of ₹ 1,22,98,440/-. In the return of income filed for the year under consideration on 29.09.2009, the assessee declared the said rental income under the head income from house property . During the scrutiny proceedings, the Assessing Officer asked the assessee to justify the ownership of the property and provide copy of sale deed of the property purchased in the name of the assessee. The Assessing Officer issued summon under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious year reflected in the balance sheet. (iv) According to the electricity bill of the property produced by the appellant, energization date was 11.07.2007 showing that the electricity connection was provided in July, 2007. 2.1 Further, on the basis of the lease-deed which was entered on 14.01.2008, and the electricity bill, the learned Commissioner of Income Tax (Appeals) was of the opinion that the property must have been constructed in the year 2007-08. According to the learned Commissioner of Income Tax (Appeals), the expenditure on construction over the property was not reflected in the books of account and thus the income generated from such property could not been treated as the income from house property and accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport of the above two conditions: (i) House tax receipt issued by the Municipal Corporation. (ii) Electricity bill and electricity connection in the name of the assessee. (iii) Sale deed for purchase of rights of construction over the second floor of the building. (iv) Lease deed entered with the tenant. 5.2 The assessee did not furnish the evidence in support of the cost of construction incurred, however, after appreciation of the evidences as available the learned Commissioner of Income Tax (Appeals) was of the view that the property was construction in the year 2007-08. 5.3 We find that in view of the evidences brought on record, the learned Commissioner of Income Tax (Appeals) has accepted the fact that property must ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
