Vacancy allowance for intended commercial lettings permits nil annual letting value where no rent is received or receivable.

Section 23(1)(c) applies to commercial property held for letting that remains vacant for the whole or part of the year where vacancy reduces actual rent below reasonable expected rent. A purposive reading treats "let" as including property intended and available to be let, provided the assessee demonstrates an intention to lease. Evidence such as a leasing business, broker-led efforts to find tenants, and subsequent letting can establish that the property was held for letting. Where no rent is received or receivable because of vacancy, the actual rent and annual letting value may be nil, eliminating deemed-rent addition.

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Issues: Whether the annual letting value of commercial properties remaining vacant throughout the year could be taken at nil under Section 23(1)(c).

Analysis: Section 23(1)(c) applies where property held for letting remains vacant and the resulting actual rent is lower than its reasonable expected rent. The provision covers vacancy for the whole year as well as part of the year. Its purposive construction requires "let" to include property intended and available to be let, where the assessee demonstrates an intention to lease it. The assessee's leasing business, efforts through brokers, and subsequent letting of the premises established that the vacant properties were held for letting. As no rent was received or receivable during the relevant year because of vacancy, the actual rent was nil.

Conclusion: The annual letting value of the properties vacant for the whole year was nil under Section 23(1)(c), and the deemed-rent addition was deleted in favour of the assessee.

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