2016 (12) TMI 1298

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....herein the common order passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as - the Tribunal). At the time of hearing of the appeals, Mr. Pankaj Jain, learned senior counsel appearing on behalf of the appellant-assessee sought to press only the following substantial question of law for our consideration, which, according to him, was common and arose to all the present appeals :- "Whether under the facts & circumstances of the case, pursuant to the explanation there is no chargeability of rent which cannot be realized resultingly according to Section 23(1)(c) of the Act, the lessor of the amount expected to be let & as receivable shall be charged whereby not realizable is less resultingly no....

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.... was challenged by the appellant-assessee by preferring seven appeals (one for each Assessment Year) before the Commissioner of Income Tax (Appeals)-I, Ludhiana (hereinafter referred to as - the Commissioner), which, by a common order, were dismissed giving a cause to the appellant-assessee to appeal to the Tribunal, which appeals also met the same fate as his appeals before the Commissioner. Laying a challenge to the common order of the Tribunal, rejecting the appeals of the appellant-assessee, the present appeals under Section 260-A of the Income Tax Act, 1961 (for short the 'Act') have been filed before this Court. Before the Tribunal, it was contended on behalf of the appellant-assessee that since the properties, which had be....

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....- tax, shall be chargeable to income- tax under the head" Income from house property". "Annual value how determined. 23. (1) For the purposes of section 22, the annual value of any property shall be deemed to be - (a) the sum for which the property might reasonably be expected to let from year to year; or (b) where the property or any part of the property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a), the amount so received or receivable; or (c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or recei....

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....wner. (4) Where the property referred to in sub-section (2) consists of more than one house - (a) the provisions of that sub-section shall apply only in respect of one of such houses, which the assessee may, at his option, specify in this behalf; (b) the annual value of the house or houses, other than the house in respect of which the assessee has exercised an option under clause (a), shall be determined under sub-section (1) as if such house or houses had been let." A perusal of the afore-quoted sections show that as per Section 23(1)(a), the annual value of any property shall be deemed to be the sum for which the property might reasonably be expected to let from year to year. Section 23(1)(b) provides that where an....

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....t of which the assessee had exercised an option under Section 23(4)(a) shall be determined under Section 23(1) as if such house or houses had been let. A harmonious reading of the above provisions indicates that in case the assessee owns more than one house, then the annual value of one of such houses, which is in his occupation as his own residence or which was not occupied by him for the reason that on account of his employment, business or profession, he had to reside at other places in a building not owned by him, is to be taken as `Nil'. For the other houses that the assessee may own which are under his occupation or could not be occupied by him for the reason that on account of his employment, business or profession he had to r....