Tribunal overturns CIT(A) decision, allows appeal on house property loss. Assessee's evidence deemed sufficient.

The Tribunal allowed the appeal against the disallowance of house property loss, overturning the CIT(A)'s decision. The Tribunal found the assessee's documentation sufficient to prove rental income and interest paid, while the Department failed to challenge the correctness of the rental amount or provide alternative valuation figures. Consequently, the Tribunal ruled in favor of the assessee, concluding that the CIT(A) erred in dismissing the claim and disallowing the loss.

---

---

Issues:
Appeal against disallowance of house property loss.

Analysis:
The appeal was filed against the order of the ld. Commissioner of Income Tax (Appeals)-4, Vadodara concerning the disallowance of house property loss of Rs. 7,69,954 for the assessment year 2013-14. The assessee claimed the property was let out for a rent of Rs. 30,000 per month, with deductions for statutory expenses and housing loan interest, resulting in the loss claimed. However, the Assessing Officer disallowed the loss due to lack of evidence, including a rent agreement and details of property valuation. The CIT(A) upheld the disallowance citing lack of evidence. The assessee contended that the property was rented to a close relative, providing tenant confirmation, bank statements, and loan details. The Tribunal noted that the documents submitted were genuine and not disputed by the Department. The Department's contention of lack of rent agreement was countered by tenant confirmation and bank statements. The Tribunal found no evidence to dispute the rental income's correctness or valuation. Section 23 of the Act defines annual value based on expected rent. As the Department failed to challenge the rental amount or provide alternative valuation figures, the Tribunal allowed the appeal, finding the CIT(A) erred in dismissing the claim and disallowing the loss.

Judgment:
The appeal against the disallowance of house property loss was allowed by the Tribunal, overturning the CIT(A)'s decision. The Tribunal found the assessee's documentation sufficient to prove rental income and interest paid, while the Department failed to challenge the correctness of the rental amount or provide alternative valuation figures. The Tribunal concluded that the CIT(A) erred in dismissing the claim and disallowing the loss, thus ruling in favor of the assessee.

---