2016 (7) TMI 942

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....)-I, Nashik has erred in not interpreting properly the provisions of section 23(1)(c) of the Income Tax Act, 1961 in ascertaining the Annual Letting Value of the properties at (i) Prathamesh Plaza, Nashik and (ii) Dande Towers, Nashik Road. 2. The learned CIT (Appeal)-I, Nashik has erred in not considering the Annual Letting Value as per Municipal Authorities (Standard Rent) in the situation of the property being vacant. 3. The Appellant craves leave to add, alter or amend any or all of the grounds of appeal on or before the hearing of the Appeal." 3. At the time of hearing, none appeared on behalf of the assessee inspite of service of notice. The Ld. Departmental Representative, Mrs. Indira Adakil appeared on beh....

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....see and in the absence of relevant facts concerning the ALV in previous and subsequent years, we abstain from interfering with the conclusion of the CIT(A) arrived on the basis of concession from assessee in this ex-parte order. 6. As regards another property at Dande Towers, the CIT(A) confirmed the action of Assessing Officer in adopting the gross ALV at Rs. 1,51,200/- having regard to the ALV of Rs. 12,600/- per month which was the actual rent received by the assessee in respect of this property in the financial year 2006-07 from the then tenant. For arriving at this conclusion, the CIT(A) relied upon the decision of the Hon'ble Andhra Pradesh High Court in the case of Vivek Jain vs. ACIT, (2011) 337 ITR 74 (AP). 7. We have careful....

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....t to assessment year 2009-10 in appeal, the assessee could not let out the property and thus remained vacant throughout the year. Therefore, the surrounding circumstances would suggest that the property was always available to be let out, however, could not be actually let out in reality. The intention to let out the property is thus loud and clear in the circumstances which did not however fructify. 8. The ALV of property remaining vacant for the whole year has to be computed with reference to section 23(1)(c) of the Act. This sub-section deals with a situation where the property remains vacant for the whole year. Section 23(1)(c) of the Act as relevant in the context is set out for ready reference as under :- "[Annual value how dete....

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....on has to be viewed with regard to the intention together with efforts put by assessee in letting out the property, etc. and then gross annual value is required to be determined. If the assessee intended to let the property and took appropriate efforts in letting the property but ultimately failed to let the same, the actual rent received from it will have to be considered as "Zero" being less than the sum referred in section 23(1)(a) of the Act. The revenue has not brought anything on record in rebuttal to say that the property has not remained vacant for the whole year or was self occupied in some manner. As noted above, the fact that the assessee had on the previous occasion in the preceding year rented the property remains un-traversed.....