Smt. Meena Rani Arora, New Delhi V. ACIT, New Delhi

ITA 393/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81749 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 14-10-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 22-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GUNJAN PRASHAD
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI RAJPAL YADAV, JM ITA NO.393/DEL/2013 ASSESSMENT YEAR : 2008-09 MEENA RANI ARORA, 201, VIPPS CENTRE, 2-COMMUNITY CENTRE, MASJID MOTH, GK-II, NEW DELHI. PAN : AAKPA2806N VS. ACIT, CENTRAL CIRCLE-22, NEW DELHI. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : SHRI S ANAT KAPOOR, ADVOCATE DEPARTMENT BY : S HRI GUNJAN PRASHAD, CIT, DR ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY THE CIT (A) ON 19.11.2012 IN RELATION TO THE ASSESSMENT YEAR 2008-09. 2. THE ONLY ISSUE RAISED THROUGH VARIOUS GROUNDS IS AGAINST THE ESTIMATION OF ANNUAL LETTING VALUE (ALV) OF THE SHI MLA PROPERTY AT `1,80,000/-. ITA NO.393/DEL/2013 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE HAD TWO HOUSE PROPERTIES, ONE SITUATED AT DELHI AND THE OTHER AT SHIMLA IN THE PREVIOUS YEAR RELEVANT TO THE ASSESSM ENT YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER CALLED UPON THE ASSESSEE TO FURNISH DETAILS OF THEIR LOCATION AND U SAGE, WHICH THE ASSESSEE DID NOT. AS THE ASSESSEE HAD NOT OFFERED ANY INCOME FROM HOUSE PROPERTY, THE AO REQUIRED THE ASSESSEE T O EXPLAIN AS TO WHY ANNUAL LETTING VALUE (ALV) OF ONE OF THESE T WO PROPERTIES BE NOT ASSESSED ON NOTIONAL BASIS. IN THE ABSENCE OF ANY REPLY GIVEN BY THE ASSESSEE, THE AO ESTIMATED ALV OF THE PROPERTY AT SHIMLA AT `1,80,000/-. AFTER ALLOWING STATUTORY DE DUCTION U/S 24 @30%, HE COMPUTED INCOME FROM HOUSE PROPERTY AT ` 1,26,000/-. NO RELIEF WAS ALLOWED IN THE FIRST APPEAL. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT TH E ASSESSEE UNSUCCESSFULLY TRIED TO BUILD A CASE BEFORE US ABOU T THE SHIMLA PROPERTY BEING NOT IN INHABITABLE STATE REQUIRING N O DETERMINATION OF ALV. NO EVIDENCE WORTH THE NAME HAS BEEN PLACED ON RECORD IN SUPPORT OF SUCH CONTENTION. IT IS SEEN FROM THE SUBMISSIONS ITA NO.393/DEL/2013 3 MADE BEFORE THE LD. CIT(A) THAT THE ASSESSEE, APAR T FROM MAKING THE ABOVE SUBMISSION, ALSO CONTENDED THAT THE ALV S HOULD BE ESTIMATED AT A LOWER RATE. THIS BELIES THE CLAIM O F NON-HABITABLE CONDITION OF THE SHIMLA PROPERTY. HOWEVER, IT IS D ISCERNIBLE FROM THE ASSESSMENT ORDER, THAT THE AO ESTIMATED THE AL V OF THIS PROPERTY AT `1,80,000/- WITHOUT ANY BASIS WHATSOEVE R. THE LD. AR UNDERTOOK TO EXTEND FULL COOPERATION TO THE AO IF T HE MATTER OF COMPUTATION OF THE ALV OF SUCH PROPERTY WAS RESTORE D FOR FRESH ADJUDICATION. UNDER SUCH CIRCUMSTANCES, WE ARE OF T HE CONSIDERED OPINION THAT THE ENDS OF JUSTICE WOULD MEET ADEQUAT ELY IF THE IMPUGNED ORDER ON THIS ISSUE IS SET ASIDE AND THE M ATTER IS RESTORED TO THE FILE OF AO. WE ORDER ACCORDINGLY AN D DIRECT THE AO TO DETERMINE THE ALV OF SHIMLA PROPERTY AS PER LAW, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSE SSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 14.10.201 4. SD/- SD/- [ RAJPAL YADAV ] [ R.S. SYAL ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 14 TH OCTOBER, 2014. ITA NO.393/DEL/2013 4 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.