TaxTMI 
TaxTMI 
2007 (8) TMI 484
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....erused. During the course of assessment, the Assessing Officer found that the assessee was having income from various heads including house property. The assessee was owning four properties at Vasant Vihar, Delhi, flat at Haridwar and a farm house at Masudpur. The assessee did not show any income from flat at Haridwar. Regarding property at Vasant Vihar the assessee had claimed that it was let out till December 2000 and after that it was lying vacant till April 2000 (sic). As per sub-section (1)(c) of section 23 where a property which is let, remains vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable in respect thereof is less than the ALV as computed under section 23(1)....
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.... and also from agricultural farm house. 4. By the impugned order, CIT (Appeals) confirmed the action of the Assessing Officer with regard to determination of ALV for property at Vasant Vihar, New Delhi whereas in respect of property at Haridwar, he deleted the addition by observing that flat at Haridwar was in the nature of Dharmashala, no rent may be taken from it. The CIT (Appeals) also held that the Assessing Officer was correct in taking the valuation of farm house on the basis of ALV as municipal value. 5. The assessee was in receipt of certain shares and securities on the death of her husband in January 1998. The shares were sold during the year under consideration. While computing capital gain, the Assessing Officer allowed ind....
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....eals) erred in not holding that the property at the farm at village Masudpur being in the nature of an out-house and well covered in the definition of 'agricultural income' under section 2(2A)(c) of the Act, no income could deemed to accrue under section 22 of the Act and further erred in determining ALV of the property at Rs. 1,20,000. (4) That the order of the learned authorities below being contrary to the facts and circumstances of the case and in law the appeal be allowed." Ground in ITA No. 4798/Delhi/05 : "The learned CIT (Appeals) has erred in law and on facts : (i )In directing the Assessing Officer to take the indexation with reference to the date of acquisition of Dhanvarsha units in the hands of her husband and not t....
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....02, there is no justification in the action of the Assessing Officer for taking the annual value of the property as per provisions of section 23(1)(a) of the Act. Neither the Assessing Officer nor the CIT (Appeals) has alleged the action of the Assessing Officer regarding property at Vasant Vihar, New Delhi remained vacant from December, 2000 till April 2002. We are therefore inclined to agree with the learned AR that both the lower authorities were not justified for taking the income from house property under section 23, as per provisions of section 23(1)(c) (sic) of the Act. Accordingly, we reverse the action of the lower authorities and direct the Assessing Officer to delete the addition made with respect to property at 8-Vasant Vihar, N....