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TMI Blog2020 (6) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... For the sake of convenience, the facts from the case of assessee, Shri S.M. Qutubuddin are taken into consideration. The assessee filed his return of income for the AY 2011-12 on 31/12/2011 declaring total income of Rs. 9,96,935/-. During the assessment proceedings u/s 143(3) of the Act, the AO has noticed that the assessee has shown 8 properties as belonging to him and his brothers and after retaining one house for self-occupation, the assessee has offered income from 4 properties and for the balance 3 properties, assessee has shown 'Nil' income. The AO observed that as per section 23 of the IT Act, 1961, the assessee should have adopted fair rental value and offered the same to tax. Therefore, with regard to a property at Tolichowki, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the CIT(A), who confirmed the order of the AO and the assessee is in second appeal before the Tribunal by raising the following grounds of appeal: "1. The order of the Learned Commissioner of Income-Tax(Appeals) is contrary to law and facts in the circumstances of the case. 2. The Learned Commissioner of Income-Tax erred in confirming the addition of Rs. 11,550 towards alleged income from house property, even though the property was vacant for the whole year and was in fact demolished, on the facts and in the circumstances of the case. 3. The Learned Commissioner of Income-Tax erred in stating that the assessing officer has adopted the value of the appellant's share 1/1 o" property even though the entire income was br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Banjara Hills, Hyderabad, on the facts and in the circumstances of the case. 9. The Learned Commissioner of Income-Tax further erred in not appreciating the fact that there was a dispute with the tenant and as such he was not paying rent to the appellant and the amount received by the appellant has been duly disclosed during the previous year relevant to the assessment year 2013-14, on the facts and in the circumstances of the case. 10. The Learned Commissioner of Income-Tax erred in confirming the addition of Rs. 5,28,300 out of the agricultural income declared by the appellant, on the facts and in the circumstances of the case. 11. The Learned Commissioner of Income-Tax (Appeals) erred in confirming the addition of Rs. 2,98,532 as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below and submitted that the rental agreement itself shows that the property, which was taken on rent was a godown and not just land as argued by the ld. Counsel for the assessee. Therefore, according to him, the AO has rightly computed the fair rental value and has rightly treated the income as 'income from house property and has brought it to tax. 6. Having regard to the rival submissions and material on record, I find that the property, which has been let out by the assessee is not just open land, but, with a shed thereon, which is treated as a godown. In the schedule of rental deed, it is mentioned that godown is built on a plot admeasuring 1000 sq. meters and therefore, income from such godown has rightly been treated as 'income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r before us. 8. The ld. DR, on the other hand, supported the orders of the authorities below. 9. Having regard to the rival submissions and material on record, I find that the assessee has not received the rent from the property during the relevant AY and has also filed a suit in O.S.No.408 of 2009 in the Court of XI Addl. Chief Judge, City Civil Court, Hyderabad for eviction of the tenant and for recovery of rent. It is the case of the assessee that the assessee has paid taxes on the receipt of the arrears of rent in AY 2013-14. In this connection, the assessee has referred to the computation of income for the AY 2013-14 which is available in the paper book to demonstrate that the assessee has paid tax on the same. I direct the AO to ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the assessee together held agricultural land to the extent of 97 acres and offered agricultural income accordingly in their returns of income which has been accepted by the AO except in the case of the assessees' before the Tribunal. Thus, the disallowance was made only in the hands of two brothers relying on the statement of SM Lateefuddin. However, I find that SM Lateefuddin has clearly stated that there were other crops grown in the land and earned income from such other crops as well. The AO has relied upon the statement of SM Lateefuddin, but he cannot pick and choose and accept only part of the statement favourable to the revenue and disbelieve the other part, which is in favour of the assessee. Shri Lateefuddin in reply to Q.N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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