TMI Blog2018 (12) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... doctrine of literal interpretation. If the annual value of the same are taken as nil in terms of sub-clause (1)(c) as contended by AR, then the provisions of clause (4) shall become otiose and shall have no applicability at all in any situation, which do not appear to be the intention of the legislatures. Estimation of annual value @8.5% appears to be without any basis since the annual value has to be determined as the value for the property might reasonably be expected to let from year to year. Therefore, AO is directed to re-compute the same in terms of the statutory provisions - Decided in favour of assessee for statistical purposes. - I .T.A. No.6339/Mum/2017 - - - Dated:- 5-12-2018 - SHRI PAWAN SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM For The Assessee : Bhupendra Shah- Ld.AR For The Revenue : Manoj Kumar Singh-Ld. DR ORDER Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [AY] 2009-10 contest the order of Ld. Commissioner of Income Tax (Appeals)-28, Mumbai [CIT(A)], Appeal No.CIT(A)-28/IT-211/ITO-17(1)(5)/2011-12 dated 16/06/2017 by raising following effective grounds of appeal:- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co-ownership Flat at Palm Apartment 6,75,000/- 5. Co-ownership Flat at Eldora 29,84,610/- 6. Bunglow at Kashid 1,04,30,115/- 3,31,96,035/- Office Premises 7. Co ownership of premises at Pheonix Mill Compound 22,80,141/- 8. Office Premises at Sikanderabad 1,24,050/- 24,04,191/- Gross Total 3,56,00,226/- Since no income was offered by the assessee against the aforesaid properties, the Ld. AO proceeded to compute the Annual Value of the same to tax the same under the head Income from House Property. The assessee defended his stand by submitting that the properties listed from serial numbers 1 to 3 were not provided with basic amenities like water l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notional rental value against these building stands restored back to the file of Ld. AO to re-adjudicate the same in the light of these evidences being submitted by Ld. AR before us. 5.2 The property listed at serial number-6 is stated to be farmhouse on agricultural land and therefore, it has been contended that no income could be estimated against the same. The properties listed at serial number 7 8 are stated to be commercial establishments which are used for the purpose of assessee s business. However, we find that Ld. AO has not made any discussion about the same in his order and has not rendered any findings against the same. Therefore, the matter of estimation of notional rent against the same also stands restored back to the file of Ld. AO for ascertain the factual matrix and re-adjudicate the same in the light of submissions made by Ld. AR. 5.3 Regarding remaining properties listed at serial number 4 5, Ld. AR has submitted that the same were not let out at all during the impugned AY and therefore, vacancy allowance against the same was available to the assessee in terms of Section 23(1)(c) as per the cited decision of the Tribunal. It has also been contended th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he previous year; or ( b) any other benefit therefrom is derived by the owner. ( 4) Where the property referred to in sub-section (2) consists of more than one house- ( a) the provisions of that sub-section shall apply only in respect of one of such houses, which the assessee may, at his option, specify in this behalf; ( b) the annual value of the house or houses, other than the house in respect of which the assessee has exercised an option under clause (a), shall be determined under sub-section (1) as if such house or houses had been let. As per the above provisions, the annual value of the property is deemed to be the sum for which the property might reasonably be expected to let [in short referred to as ALV] from year to year. In case the property or any part of the property was let, the actual rent received or receivable was deemed to be the annual value, if it exceeds the ALV. The subclause (c) provides for a situation where-in the property or any part of the property was let out and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner was less than ALV, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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