TMI Blog2021 (1) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... perty in question to be its annual value. So, we are of the considered view that GAV computed by the AO by ignoring the provisions contained u/s 23(1)(a) of the Act is not sustainable in the eyes of law. Findings returned by the ld. CIT (A) are based upon the facts factually dealt with on record wherein the assessee contended that since he (assessee) has not received the permission to occupy the property before 30.03.2013, the provisions of section 22 and 23 (1) of the Act in regard to notional income was wrongly applied by the AO. CIT(A) reached the conclusion on facts that though assessee was granted permission to occupy the building w.e.f. 30.03.2013 but he had obtained the occupation certificate from Mumbai Metropolitan Region Dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 23 (1) of the Income-tax Act, 1961 (for short the Act ). 3. Assessee carried the matter before the ld. CIT (A) by way of filing the appeals who has partly allowed the appeal. Feeling aggrieved by the order passed by the ld. CIT (A), the Revenue has come up before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Ld. DR for the Revenue challenging the impugned order contended that Gross Annual Value (GAV) has to be computed on financial year basis. Ld. DR filed written submissions which hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AO without bringing on record any evidence of the quantum of rent realizable by the assessee qua the property in question proceeded to take ad hoc rate of 7% of the value of property in question to be its annual value. So, we are of the considered view that GAV computed by the AO by ignoring the provisions contained u/s 23(1)(a) of the Act is not sustainable in the eyes of law. 10. Ld. CIT(A) has also taken into account the decision rendered by the coordinate Bench of the Tribunal in Sunil Kumar Saha vs. ITO, Ward 55 (1), Kolkata (2015) 64 taxmann.com 109 wherein it is held that, estimation of notional rent by the AO without giving basis for the same was liable to be rejected. It is also held by the coordinate Bench of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same was disclosed under the head schedule 20 other Current Assets- Assets held for sale in its audited financial statements for the period ended March 31, 2013 relevant to AY 2013-14. The appellant has repeatedly stated that it had not received permission to occupy the property before 30.03.2013; hence, the provisions of sections 22 and 23(1) of the IT Act, 1961, with respect to computation of notional income were wrongly applied by AO. Appellant has also relied on a no. of judicial pronouncements in support of its submissions. However, the facts of the cases relied upon by appellant can be distinguished from the facts of the impugned case. In this regard, even though the owner was granted permission to occupy the building with effect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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