Love Kumar Khosla, Delhi V. JCIT, Range-72, Delhi

ITA 4739/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0842 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 24-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOURAV PUNDIR
• Assessee Lawyers: PRADEEP AGARWALCA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. MAHAVIR PRASAD, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.4739/DEL/2017 ASSESSMENT YEAR: 2013-14 LOVE KUMAR KHOSLA KHOSLA FARM, SULTANPUR, MAHRAULI GURGAON ROAD, DELHI PAN NO.AAAPK9263H VS JCIT RANGE-72 DELHI (RESPONDENT) APPELLANT BY SH. PRADEEP AGARWAL,CA RESPONDENT BY SH. GOURAV PUNDIR, SR. DR DATE OF HEARING: 13/07/2021 DATE OF PRONOUNCEMENT: 13/07/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST T HE ORDER OF THE CIT(A)-21, NEW DELHI DATED 26.04.2017 PERTAININ G TO A.Y. 2013-14. 2 2. THE REVISED GROUNDS OF APPEAL ARE AS UNDER :- 3. BEFORE US, AT THE VERY OUTSET, THE COUNSEL STAT ED THAT HE WOULD BE PRESSING ONLY GROUND NO.5 WITH ITS SUB GRO UND 5.1. 4. ON SUCH CONCESSION ALL OTHER GROUNDS ARE DISMISS ED AS NOT PRESSED. 5. THE UNDERLYING FACTS IN THE SURVIVING GROUND ARE THAT DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS THE A O NOTICED THAT ASSESSEE HAS SHOWN INCOME FROM HOUSE PROPERTY FROM RENTING OUT OF PROPERTY AT DLF CITY, GURGAON AND HA S DECLARED 3 ANNUAL RENTAL VALUE U/S.23 OF THE ACT AT RS.34,18,7 26/- AND CLAIMED DEDUCTION @ 30% U/S.24 (A) OF THE ACT AMOUN TING TO RS. 10,25,618/-. 6. ASSESSEE WAS ASKED TO FURNISH THE RENTAL DETAILS . THE DETAILS WERE FURNISHED AND IT WAS EXPLAINED THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAD LET OUT THIS PROPERT Y ON A MONTHLY RENTAL OF RS.4.30 LACS WHICH WAS TO BE INCREASED BY 5% FROM 06.08.2012. IT WAS FURTHER EXPLAINED THAT THE TENAN T VACATED THE PROPERTY IN OCTOBER, 2012 AND THE PROPERTY REMAINED VACANT TILL 04.03.2013 AND THEREAFTER THE PREMISES WAS LET OUT ON A MONTHLY RENT OF RS. 4,00,000/-. 7. THE AO WAS OF THE FIRM BELIEF THAT IF THE PROPER TY HAD BEEN OCCUPIED BY THE TENANTS FROM THE ENTIRE YEAR THE AS SESSEE WOULD HAVE RECEIVED RS.52,84,926/- AND THIS SHOULD BE THE ALV OF THE PROPERTY. THE AO TOOK THE ALV OF RS.53,32,000/- BEI NG MONTHLY RENT OF RS.451500/- AND AFTER ALLOWING DEDUCTION U/ S. 24(A) OF THE IT ACT @ 30% MADE THE ADDITION OF RS.13,39,296/-. 8. ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) BU T WITHOUT ANY SUCCESS. 4 9. BEFORE US THE COUNSEL FOR THE ASSESSEE FAIRLY CO NCEDED TO THE DETERMINATION OF THE ALV AT RS.53,32,000/-. BUT VE HEMENTLY STATED THAT THE ASSESSEE IS ENTITLED FOR VACANCY AL LOWANCE AS PER THE PROVISIONS OF SECTION 23 (1)(C) OF THE ACT. 10. PER CONTRA THE DR STRONGLY SUPPORTED THE ASSESS MENT ORDER. 11. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. SINCE THE ALV HAS BEEN ACCEP TED AT RS.53,32,000/-, ALL THAT HAS TO BE SEEN IS WHETHER THE ASSESSEE IS ENTITLED FOR VACANCY ALLOWANCE. THE UNDISPUTED FACT IS THAT PROPERTY REMAINED VACANT FROM OCTOBER, 2012 TO 04.0 3.2013. THIS CLEARLY ATTRACTS THE PROVISIONS OF SECTION 23 (1) (C) OF THE ACT WHEREIN IT HAS BEEN PROVIDED THAT IF THE PROPERTY I S LET OUT AND WAS VACANT DURING THE WHOLE OR ANY PART OF THE PREV IOUS YEAR AND OWING TO SUCH VACANCY THE ACTUAL RENT RECEIVED BY T HE OWNER IN RESPECT THEREOF IS LESS THAN SAME REFERRED TO IN CL AUSE A OF SECTION 23 (1) OF THE ACT. 12. THE UNDISPUTED FACT IS THAT THE ASSESSEE WAS RE CEIVING A MONTHLY RENT OF RS.4.30 LACS AND THE TENANT VACATED THE PROPERTY AND THE PROPERTY REMAINED VACANT FROM OCTOBER 2012 TO MARCH, 2013 AND THEREAFTER THE PROPERTY WAS AGAIN LET OUT FOR A MONTHLY 5 RENT OF RS. 4 LACS. THIS MEANS THAT NOW THE PROPER TIES RENT WHICH IS LESS THAN THE PREVIOUS RENT. 13. CONSIDERING THE FACTS IN TOTALITY WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE IS ENTITLED FOR VACANCY ALLO WANCE FOR A PERIOD OCTOBER, 2012 TILL 04 TH MARCH, 2013 AND WE DIRECT THE AO TO ALLOW THE VACANCY ALLOWANCE ON THE ALV DETERMINE D BY HIM. 14. NEEDLESS TO MENTION THE ASSESSEE IS ALSO ENTITL ED FOR THE STATUTORY DEDUCTION @ 30%. 15. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED AS PER ABOVE DIRECTIONS. 16. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF BOTH THE REPRESENTATIVES ON 13.07.2021. SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER A CCOUNTANT MEMBER *NEHA* DATE:-13.07.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 6 DATE OF DICTATION 13.07.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13.07.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 13.07.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 13.07.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 13.07.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 13.07.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 13.07.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER