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TMI Blog2018 (12) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... t at Laxmi Bhawan, Madras while ignoring the facts and submissions of the case. Thus, the addition so made should be deleted. 2. The appellant craves the leave to add, substitute, modify, delete or amend all or any ground of appeal either before or at the time of hearing." 2. Brief facts of case are as under: Assessee filed her return of income on 29/09/12 declaring total income of Rs. 1, 86, 79, 370/-. The case was selected for scrutiny and notice under section 143(2) was issued along with questionnaire and notice under section 142(1). In response to the statutory notices, representative of assessee appeared before Ld.AO and furnished required details as called for. 2.1 Ld.AO observed that assessee had earned income from salary, hous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant could not be found and remained vacant. It was thus, submitted by Ld. Counsel that under such circumstances the property has to be considered as per provisions of section 23(1)(c) of the Act. He plays reliance upon following decisions of coordinate benches of this Tribunal: * Preamsudha Exports (P) Ltd., vs. ACIT reported in (2008) 110 ITD 158; * Shakuntala Devi versus DDIT reported in (2000 del) 31 CCH 32 (Bang); * ACIT versus Dr Prabha Sanghi reported in (2012) 139 ITD 504 (Delhi); * Reynaud Shamlal vs. ACIT in ITA No. 1100/del/2014 wide order dated 21/09/16; 6. Ld. Counsel further submitted that Ld.CIT (A) confirmed addition by relying upon decisions of Hon'ble Andhra Pradesh High Court in case of Vivek Jain vs ACIT reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anced by both sides and the light of the records placed before us. 9. In order to attract section 23(l)(c), the following requirements must be fulfilled (i) the property, or any part thereof, must be let; and (ii) it should have been vacant during the whole or any part of the previous year ; and (iii) owing to such vacancy the actual rent received or receivable by the owner in respect thereof should be less than the sum referred to in clause 9.1 It is only if these three conditions are satisfied together, would clause (c) of section 23(1) apply, in which event amount received or receivable, in terms of clause (c) of section 23(1), shall be deemed to be the annual value of the property. 10. Further, Clause (c) does not apply to situ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year, both situations, i.e., "property is let" and "property is vacant for the whole of the relevant previous year" cannot co-exist does not merit acceptance. Clause (c) encompasses cases where a property is; let out for more than a year in which event alone would the question of if being vacant during the whole of the previous year arise." 13.1 From the above provision of law, it can be construed that in case the property or part thereof was vacant during the period, the proportion deduction should be allowed from the sum on which the property might reasonably be let out from year to year. We find that it is the plea of the assessee that due to inherent defects, the flat could not be let out. Hence, the flat remained vacant. Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that due to fall in property prices, the same could not be let out year after year because of which disputed property remained vacant. One more relevant factor which we observe is that, assessing officer in any of preceding assessment year, post assessment year 2002-03, has never disputed that the property was not vacant. In fact in assessment order passed for year under consideration, Ld.AO is admitting to the fact that property in question was let out only till assessment year 2002-03 and thereafter it was vacant, even during year under consideration. Under such circumstances, in our considered opinion assessee's case stands squarely covered by view taken by coordinate bench of this Tribunal in case of Premsudha Exports (P) Ltd. (s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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