TMI Blog2019 (11) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... come to tax. In the given facts, the provisions of section 23(1)(c) of the Act get attracted. The assessee during the Financial Year 2015-16 has purportedly rented out the premises and has offered the rental income to tax. A perusal of the statement of profit and loss account for the year ended 31/03/2016 furnished by the ld. Authorized Representative of the assessee reveal that the assessee has received rental income of ₹ 2,10,000/-. Assessee has also furnished copy of the assessment order dated 18/12/2018 passed under section 143(3) of the Act for assessment year 2016-17. No addition on account of rental income/ notional rental income has been made by the Assessing Officer in the assessment order. Thus, rental income offered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The brief facts germane to the present appeal are: The assessee/appellant company is engaged in the business of trading in shares and commodities. The assessee owns a property situated at Anna Salai, Chennai. In the return of income for the impugned assessment year the assessee did not disclose any rental income from the aforesaid property. During the assessment proceedings the assessee explained that since the property was lying vacant during the relevant period, no rental income was disclosed. The Assessing Officer estimated rental income of the property at 6% of the capital value and made addition of ₹ 11,37,878/- as notional rent. Aggrieved against the assessment order dated 29/12/2016, the assessee filed appeal before the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arted just opposite to the property of the assessee. Due to on going Metro Project work, HDFC Bank Ltd. vacated the premises in the year 2010. The ld.Authorized Representative of the assessee furnished copy of termination of tenancy notice dated 01/05/2010 by HDFC Bank Ltd. 4.1 The ld.Authorized Representative of the assessee contended that after the property fell vacant, the assessee made efforts to find new tenant but fail to get any tenant due to obstruction caused by ongoing Metro Project just before the entrance of the premises. The Metro Project got delayed for more than five years, consequently the appellant also could not find suitable tenant for the premises. Thereafter, in the year 2015-16 the assessee could find a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the contentions raised by the assessee before the Tribunal are the same as were made before the first appellate authority. The CIT(A), after considering the submissions and the decision in the case of Sachin R. Tandulkar(supra) has confirmed the addition. The assessee has not placed on record any document to show that assessee took some steps for letting out the property. 5. We have heard the submissions made by rival sides and have perused the orders of authorities below. The assessee in appeal has assailed the addition of ₹ 11,37,878/- on account of notional rent in respect of vacant property. It is an undisputed fact that the property of the assessee at Anna Salai, Chennai was let out in the past and the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The provisions of clause (c) of section 23(1) of the Act are attracted if following conditions are satisfied: (i) The property was let out in the past; (ii) The property was vacant during whole or any part of the previous year; (iii) On account of vacancy the actual rent received or receivable by the owner is less than the rent determined under clause(a) of section 23(1) of the Act. If all above conditions are met the actual rent received/nil rent, as the case may be would be annual rental value of property. 6.1 In the present case it is an undisputed fact that the property in question was let out in the past, during the period relevant to ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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