https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=757954 https://www.taxtmi.com/caselaws?id=757954 Addition as deemed Rental income - flats owned by assessee, these flats were allotted to assessee as a result of joint development agreement - CIT(A) deleted addition as there was no addition made in the case of other two co-owners of the same property for the same assessment year - HELD THAT:- We observe that it is settled position of law as propounded in the case of Union of India v. Kaumudini Narayan Dalal [ 2000 (12) TMI 101 - SC ORDER] that the approach of the Revenue in respect of the assessees, who are party to same transaction should be uniform. It has been held by the Hon ble Supreme Court that the Revenue cannot adopt the tactics of pick and choose while assessing the citizens of India, otherwise it would be violation of Article 14 of the Constitution of India. Therefore, we are of the view that the ld. CIT(A) is correct in deleting the addition of deemed rental income applying the rule of equality before law. Notwithstanding to this on merits also we observe that, whether deemed rental annual value is assessable in respect of the flats which were not acquired for self-occupation rather kept as investment for sale, we find tha in the case of Sachin R Tendulkar [ 2018 (8) TMI 847 - ITAT MUMBAI] has decided the issue in favour of assessee. Whether the gain arose to the assessee on sale of flats would be long term capital gain or short term capital gain - Undisputed facts are that assessee has acquired the land somewhere in 1960 and the rights in flats, allotted to assessee has been accrued on 15-12- 2010 and other was entered on 19.06.2013, when the Joint Development agreements were entered into by the assessee. No material has been brought on record by the AO or by DR before us to refute these factual observations made by the NAFC. Further in AYs 2014-15 and 2015-16. The gain attributable to this land was earlier assessed by the department as long term capital gain. D.R. failed to point out any change in the facts and circumstances even this impugned year. Therefore, applying the principle of consistency as formulated in the case of Radhasoami Satsang [ 1991 (11) TMI 2 - SUPREME COURT] we are of the view that the CIT(A) is correct in allowing the appeal of the assessee. Taxability of income from alleged plant and machinery - We observe that there is no clear finding of the AO or CIT(A) on this issue as to what was the monthly rent and how much TDS was deducted by the payee because if we multiply 1,58,590/- by 12(1,58,590X12) then the amount would come Rs19,02,360/- and not 12,52,387/- as considered by the CIT(A). AO has to re-examine the issue a fresh. We made it clear that in case the payee has deducted TDS @ 10% and assessee would be able to reconcile the correct amount of rent with 26AS then certainly the income to be taxed as Income form House property and addition is required to be made. With this observation we deem it necessary to remit this issue to the file of AO for examination. We direct the AO that he will confine the fresh proceedings to this issue only. Case-Laws Income Tax Tue, 30 Jul 2024 00:00:00 +0530