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TMI Blog2017 (3) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12. 2. The Hon'ble CIT(A) have not considered the facts of the case and have passed the order without considering the facts that out of total 6 rooms,4 rooms which are furnished are given on rent and 2 are vacant, however vacant rooms are not same in amenities and hence rents cannot be considered on same ground for vacant offices and rented offices and the fact is regarding purchase of residential house and exemption claimed u/s 54F is not allowed on the basis of technical fault caused at Registrar's office (Govt.) and therefore the order of CIT(A)- 13 should be cancelled. 3. Your appellant reserve their rights to add, amend and alter the above grounds of appeals and statement of facts as and when the occasion arises and will be en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d independent residential houses and not adjoining to each other. Therefore, he allowed deduction in respect of one eligible house and denied exemption in respect of another house. The Assessing Officer thus held that the assessee is liable to pay capital gain tax on long term capital gains determined at Rs. 23,97,802/- instead of Nil long term capital gains disclosed by the assessee. 4. The Assessing Officer also noticed that the assessee was owner of six consulting rooms at a hospital building. It was claimed by the assessee that the assessee has given two consulting rooms to a doctor for a annual rent of Rs. 2,58,000/-. The assessee further claims that another consulting room has been given to a medical store for annual rent of Rs. 18,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er accordingly made addition of Rs. 3,46,800/- towards ALV of vacant offices. 5. The assessee challenged the order of the Assessing Officer before the CIT(A). The CIT(A) also did not find merit in the appeal of the assessee. It will be apt to reproduce the relevant operative part of the order of the CIT(A) on both the issues, which reads as under:- "I have carefully considered the Assessment order and submissions of the appellant filed during the appellate proceedings. The first ground of appeal relates to the addition made by the AO on account of vacant offices which is not justified. The AO has made addition on account of ALV calculated on basis of rental received @ Rs. 10,000 per month for six consulting rooms owned by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt law. It has been held by the Hon'ble Kerala High Court in the case of CIT v/s. Johay Joseph (Ker) 241 ITR 423 that: "If the rent received or receivable is higher than the sum for which property right reasonably be expected to let, the amount received or receivable shall be annual value of property." In view of the above discussion, the addition made by the AO on this account is confirmed." 6. Aggrieved, the assessee filed appeal before the Tribunal. 7. The ld. AR for the assessee submitted that the assessee is entitled to claim deduction u/s 54F as against wrong claim made under Section 54 of the Act. The ld. AR further submitted that the ALV determined for vacant commercial space cannot be treated at par with other commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he second issue involved is determination of ALV on vacant commercial premises qua the other commercial premises situated in the same building and adjoining to each other which are equipped with some amenities. We find from the building plan that all the commercial spaces are situated adjoining to each other and therefore, there is sound basis for estimation of ALV of the vacant premises. The assessee has not shown before us as to what amenities have been provided and what value thereof has been determined with reference to any rent agreement. In absence of any document that show that the amenities were part of the commercial premises rented out and the rent was determined factoring such special amenities, we are not in a position to ascert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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