HARJEET SINGH KALRA,DELHI V. ACIT, CIRCLE- 29(1), NEW DELHI

ITA 5446/DEL/2025

AI Insights

The case involves an appeal by Sh. Harjeet Singh Kalra against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which had added a deemed annual letting value of Rs. 2 lakhs to the assessee's income for the assessment year 2018-19. The addition was based on the rental income declared in the preceding assessment year. However, it was revealed that the tenant had vacated the property prior to the relevant assessment year, rendering the addition unjustifiable. The Tribunal, after hearing both parties and reviewing the case records, decided in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782724 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 02-09-2025
• Other Referred Cases: Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: HARJEET SINGH KALRA ASSESSEE
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.5446/Del/2025 Assessment Year: 2018-19 Sh. Harjeet Singh Kalra, 584, Gandhi Cloth Market, Delhi Vs. ACIT, Circle-29(1), New Delhi PAN: AADPK1374Q (Appellant) (Respondent) ORDER This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1061273623(1), dated 21.02.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused. 2. For the reasons stated in the assessee’s condonation averments, delay of 503 days in filing of instant appeal is hereby condoned in light of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC). Assessee by Sh. Harjeet Singh Kalra (Assessee) Department by Sh. Manoj Kumar, Sr. DR Date of hearing 29.10.2025 Date of pronouncement 29.10.2025 Printed from counselvise.com ITA No.5446/Del/2025 2 | P a g e 3. Next comes the sole substantive issue of deemed annual letting value of the assessee’s shop no. 1, Devnagar, amounting to Rs.2 lakhs added by both the learned lower authorities. Learned departmental representative vehemently argues in support of the impugned addition that the same is very much based on the assessee’s declared rental income in the preceding assessment year. 4. That being the case, a perusal of the case records indicates that the assessee’s tenant Mohd. Arfi, s/o Gulam Rasood had already vacated the above stated house property, shop no. 1, Devnagar on 13.08.2016; and, therefore, his annual letting value computed for the entire relevant previous year could not be held as justifiable in nature. The same is directed to be deleted therefore. No other ground or argument has been pressed before us. 5. This assessee’s appeal is allowed. Order pronounced in the open court on 29th October, 2025 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 29th October, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Printed from counselvise.com ITA No.5446/Del/2025 3 | P a g e 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "