2016 (3) TMI 241

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....ital rightly claimed by the appellant u/s 24(b) of the I.T. Act, 1961 on the basis of it being vacant during the year as it is no where mentioned u/s 24(b) of the I.T. Act,1961 that property should be let out for claiming deduction of interest. Therefore, the action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the order being illegal and without authority of law.'' 2.1 During the course of hearing, it is found that the assessee has filed the appeal late by 50 days. The application for condonation of delay has been filed by the assessee contending that assessee's computer and software's were seized by M/s. Adobe Systems Indian (P) Ltd. due to which the....

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....4 of the I.T. Act, 1961 (iii) Assessee made all the efforts to let out Flat B-2 and even did not use it for its own business (iv) No tax can be levied on notional income The assessee relied on following judgements before the ld. CIT(A). (i) Premsudha Exports (P) Ltd. vs. ACIT 110 ITD 158 (Mum.) (ii) DLF Office Developers vs. ACIT 23 SOT 19 (Del) However, the ld. CIT(A) confirmed the following observations of ld. AO in this behalf :- ''.......Further during the year under review the assessee has given only one flat on rent i.e. Flat No. F-102 (area 1250 sq. ft ) and other flat was remained vacant i.e. Flat No. B-2 (area 850 sq.ft). Therefore, the assessee is allowed total income get area-wis....

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....ion under the head income from business. Hence, the depreciation claimed on these flats at Rs. 2,74,301/- is thus disallowed and added back to the total income of the assessee. This would result in an addition of Rs. 2,74,301/- 3.3 Aggrieved, the assessee is before ITAT, ld. Counsel for the assessee contends that :- ''Vacancy allowance in computation of property income is governed by Section 23(1) as amended by the Finance Act, 2001 w.e.f. April 1,202 by insertion of clause (c). In order to attract clause (c), the following requirements must be fulfilled (i) the property or any part must be let out; (ii) it should have been vacant during the whole or any part of the previous year; (iii) due to the vacancy, the actual rent receiv....