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of <h1>Tribunal rules flats as single unit for tax, deletes added income. Capital gain matter remanded.</h1> The Tribunal allowed the appeal in the case involving the addition of income from house property, ruling that the two flats should be considered a single ... Income from house property Issues Involved:1. Addition of income from house property.2. Addition in respect of capital gain on sale of flat.Summary:Issue 1: Addition of Income from House PropertyGround No. 1(a):The assessee, a Managing Director, claimed two flats (18B and 19B) as a single duplex flat for self-occupation, showing annual value at Rs. nil. The Assessing Officer (AO) disagreed, treating them as separate units due to separate agreements and subsequent rental, computing income u/s 23(4)(b) at Rs. 5,15,274 per flat. The CIT(A) upheld this view. The Tribunal, however, found the flats to be a single duplex unit, used for self-occupation, and thus, the annual value should be nil. The addition of Rs. 5,15,274 was deleted.Ground No. 1(b):The assessee contested the addition of Rs. 5,15,274 for another flat (No. 21). The CIT(A) did not address this specific ground. The Tribunal remanded the issue back to the CIT(A) for fresh adjudication, allowing the ground partly for statistical purposes.Issue 2: Addition in Respect of Capital Gain on Sale of FlatGround No. 2:The CIT(A) had directed the AO to determine the long-term capital gain based on the District Valuation Officer's report. The Tribunal found this approach non-compliant with sections 250(6) and 251(1)(a) of the Act, which require a reasoned order. The matter was remanded back to the CIT(A) for a fresh decision, allowing the ground partly for statistical purposes.Appeal by Mrs. Kusum Suresh Sadarangani:Ground No. 1(a):Similar to Shri Suresh C. Sadarangani's case, the Tribunal allowed the ground, treating the duplex flats as a single unit for self-occupation.Ground No. 1(b):Similar to Shri Suresh's case, the Tribunal remanded the issue of addition (Rs. 2,57,637 in this case) back to the CIT(A) for fresh adjudication, allowing the ground partly for statistical purposes.Conclusion:Both appeals were partly allowed for statistical purposes.
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