Ms. Abha Jhol, Bangalore V. Asst. Commissioner of Income Tax, Bangalore

ITA 2050/BANG/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8536 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-02-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 25-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R V SREENIVA SAN J
• Assessee Lawyers: RAJESWARI S
• Keywords: Deemed owner of house property

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC - B BENCH : BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.2050/BANG/2016 ASSESSMENT YEAR : 2009-10 MS. ABHA JHOL, NO.2/8B, MATHA PITHRU KRUPA, NANJAPPA ROAD, BENGALURU 560 027. PAN: AFIPJ 2069M VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-14(1), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : MS. RAJESWARI S., CA RESPONDENT BY : SHRI A.R.V. SREENIVASAN, JCIT(DR) DATE OF HEARING : 16.02.2017 DATE OF PRONOUNCEMENT : 23.02.2017 O R D E R PER A.K. GARODIA, ACCOUNTANT MEMBER THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER OF THE LD. CIT (APPEALS) -5, BENGALURU DATED 11.08.2016 FOR THE AS SESSMENT YEAR 2009-10. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER :- 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS I N CONFIRMING THE DISALLOWANCE RS. 1,54,000/- OF OF HOUSE PROPERTY LO SS BY CONSIDERING HOUSE PROPERTY AS DEEMED LET OUT, SUCH DISALLOWANCE IS RE QUESTED TO BE DELETED. 3. IT IS SUBMITTED BY THE LD. AR OF ASSESSEE THAT A S PER PAGE NO.89 OF PB, LEASE AGREEMENT IS DATED 23.03.2009 AND BEFORE THAT, THE PROPERTY WAS LYING VACANT BUT THE AO HAS HELD THAT THIS CONTENTION OF ASSESSEE IS NOT ACCEPTABLE AND HE HAS MADE ADDITION IN RESPECT OF THOSE 11 MONTHS PERIOD FROM APRIL, 2008 TO FEB. 2009 BY HOLDING THAT PROPERTY IS DEEMED TO BE LET OUT DURIN G THIS PERIOD ALSO. HE SUBMITTED ITA NO.2050/BANG/2016 PAGE 2 OF 3 THAT AS PER PROVISIONS OF SECTION 23(1)(C) OF THE I NCOME-TAX ACT, 1961 [THE ACT], IN CASE OF LET OUT PROPERTY, ACTUAL RENT RECEIVED OR R ECEIVABLE IS TO BE TAXED IF THE PROPERTY WAS VACANT DURING THE WHOLE OR PART OF THE PREVIOUS YEAR AND BECAUSE OF SUCH VACANCY, THE ACTUAL RENT RECEIVED OR RECEIVABL E IS LESS THAN THE AMOUNT FOR WHICH THE PROPERTY MIGHT REASONABLY BE EXPECTED TO LET FROM YEAR TO YEAR, AS PER SECTION 23(1)(A) OF THE ACT. 4. THE LD. DR OF REVENUE SUPPORTED THE ORDERS OF AU THORITIES BELOW. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT IT IS NOT IN DISPUTE THAT PROPERTY WAS LET OUT AND THE SAME WAS VACANT FROM A PRIL, 2008 TO FEB. 2009 AND THEREFORE, AS PER THE PROVISIONS OF SECTION 23(1) ( C) OF THE ACT, THE ACTUAL RENT RECEIVED BY THE ASSESSEE IS TO BE SUBJECTED TO TAX AND RENT FOR THE VACANCY PERIOD DURING APRIL, 2008 TO FEB. 2009 CANNOT BE SUBJECTED TO TAX. IN THIS VIEW OF THE MATTER, THE ADDITION MADE BY THE AO IS DELETED. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF FEBRUARY, 2017. SD/- ( A.K. GA RODIA ) ACCOUNT ANT MEMBER BANGALORE, DATED, THE 23 RD FEBRUARY, 2017. / D ESAI S MURTHY / MS / ITA NO.2050/BANG/2016 PAGE 3 OF 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.