annual value of not let out property

[anand menon]

What should be the annual value u/s 23 in the event of a property whch is vacant all throughout the current financial year but was let out in the previous financial year? In the case of a new bulding for which the owner could not find any tenants since its construction, can the annual value be taken to be nil.?

regards

anand

[guna ch]

If the house is vacant for 12 months then there is no income from house property

[Surender Gupta]

It is upon the assessee to prove that its intent was to let the property out but could not. Once it is proved that the property was vacant and available for rent, assessee is entitled for vacancy allowance.

But, if failed to prove the same, no vacancy allowance.

See Shri Apoorva Patni, & Others Versus Additional Commissioner of Income Tax Range-2, Pune [2012 (9) TMI 828 - ITAT, PUNE]

AI Summary

Vacancy allowance: entitlement depends on proof of intention and availability to let; absent proof, annual value may be nil. Vacancy allowance for house property depends on the assessee proving that the property was genuinely available for rent and that there was intent to let it out but tenants could not be found; absent such proof, no vacancy allowance is allowed and there is no income from the property if it remained vacant for the entire year.