2017 (8) TMI 742

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....he Ld. CIT(A) erred in upholding the action of the AO in disallowing a total of the expenses of Rs. 1,94,640/- for each of the alleged two residential units on the ground that the same are incurred towards purposes not allowable to be claimed as deductible expenses while computing under the head"Income from House Property." 2. He failed to appreciate and ought to have held that: (i) The aforesaid expenses were incurred towards electric meter, water meter paid to the society at the time of purchase of flats as also towards undertaking plastering, flooring, etc. work on the residential flat purchased by the appellant; (ii) These expenses were capitalized to the cost of the flats and the appellant has not claimed any deductio....

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.... the present appeal before us. ISSUE NO.1 :- 4. Under this issue the assessee has claimed that the Flat No. 1401 and 1402 are single residential unit used by the assessee therefore, no notional rent was required to be assessed with regard to the property no. 1402. Therefore, the finding of the CIT(A) is wrong against law and facts and is liable to be set aside. The Ld. Representative of the assessee has argued that the Assessing Officer has admitted this fact that the entrance and the kitchen were one in both the unit and was being used by the assessee for his own facilities, therefore, in the said circumstances it was quite clear that the Flat No. 1401 and 1402 were being used for as a single unit hence, no notional rent was liable t....

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....s have been mentioned. Undoubtedly, the said finding was confirmed by the CIT(A). It is only to be seen that the assessee purchased two units and thereafter the assessee was using the said units as single one after the necessary modification or not. The Assessing Officer in assessment order admitted this fact that the entrance of the both the units was single one and the kitchen of both the units was also be single one. However, the assessee did the modification in accordance with her convenience. The assessee also produced some other evidences to prove this fact that both the units were being used as a single unit therefore, no notional rental value of the other unit was liable to be assessed. The assessee has sold both the units by virtue....

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....02 be treated as nil being no notional rental income is required to be assessed in respect of a single unit. In view of the said circumstances, we are of the view that the finding of the CIT(A) on this issue is wrong against the law and fact and is not liable to be sustainable and the eye of law. Therefore, we set aside the finding of the CIT(A) on this issue and decide this issue in favour of the assessee against the revenue. ISSUE NO.2:- 9. At the time of the Argument the Ld. Representative of the assessee did not press this ground. Therefore, this ground is being decided against the assessee being not pressed. ISSUE NO. 3:- 10. Under this issue the assessee has challenged the addition of expenses of Rs. 3,89,280/-. The conten....