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TMI Blog2020 (7) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... fter 'the Act'). 2. The only issue in this appeal of assessee is against the order of CIT(A) in confirming the addition made by the Assessing Officer in regard to notional rental income on commercial property under section 23(1)(a) of the Act. For this assessee has raised the following 2 grounds: - "1. Because, the CIT(A) has erred in law and on facts confirming the addition of Rs.56,66,976 on account of notional rental income on unsold stock u/s 23(1)(a) made by the Assessing Officer by following the decision of the Hon'ble Delhi High Court in the case of CIT v. Ansal Housing Finance & Leasing Ltd. 354 TR 180 (Delhi). 2. Because, the CIT has failed to appreciate that calculation of notional rental income on commercial property is outs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in assessee's own case for Assessment Year 2014-15 in ITA No.666/Mum/2019 vide order dated 28.01.2020, wherein Tribunal has considered this issue vide Para 10 to 13 as under: - "10. We have considered the rival submissions of the parties and have gone through the orders of the authorities below. There is no dispute that the assessee has undertaken development/construction of commercial building namely 'Proxima' at plot No. 19, sector 30A, Vashi. Project was undertaken by the assessee on 'assignment cum development' agreement dated 29.10.2007 with M/s. U.S. Roof Limited. Under the agreement the assessee was entitled to retain an area of 19,840 square feet of developed area. There is no dispute that the assessee let out 8170 squa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee vehemently argued that lease of the plot on which assessee developed project for APIDC has been cancelled by lessor CIDCO vide order dated 31.12.2015. Before cancellation lease deed show-cause notice dated 25.8.2013 was issued to APIDC as to why lease should not be cancelled as the development of leased plot was not in accordance with condition of lease. Learned AR of the assessee has strongly relied upon the decision of Hon'ble Jurisdictional High Court in the case of Sharan Hospitality Pvt Ltd. (supra) wherein Hon'ble Court while considering the question of law "whether on the facts and circumstances of the case Income Tax Appellate Tribunal was right in law in holding the annual letting value of the property is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to let out the property. Therefore, adjudication on other submissions of learned AR has become academic." 5. The learned Sr. Departmental Representative Shri Michael Jerald contested the issue but we noted that the issue is already been adjudicated by Tribunal in earlier year, wherein it is held that once, there is show cause notice issued to the assessee for cancellation of lease and finally the lease was cancelled vide order dated 31.12.2015 and the same was served to assessee on 01.01.2016. This being impossibility of renting out the property, the Assessing Officer is not justified to charge notional rent from this property and assess the same as income from house property as deemed income. We respectfully following the view taken b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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