TaxTMI 
TaxTMI 
TaxTMI 
2017 (10) TMI 169
X X X X Extracts X X X X
X X X X Extracts X X X X
.... are being disposed of through this common order. 2. Brief facts of the case are that the assessee is a builder and promoter who had several simultaneous residential/commercial projects undertaken at different places. As on any date the assessee had few unsold flats/commercial space/open area etc. in different projects. There were also certain flats/commercial spaces, open area in respect of which occupation certificate was yet to be obtained even though the projects had been completed. This was so because the assessee had treated the projects as being completed on completion of 90% of the project and had offered the same for taxation. However, the Assessing Officer was of the view that unsold properties also qualified for inclusion in inc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e ld. CIT(A) against the assessment orders dated 7.5.2013 and 27.5.13 and submitted that since the alternate grounds had not been adjudicated upon in the earlier round, to the extent of grounds remaining undisposed, the appeals of the assessee were pending. The assessee submitted before the ld. CIT(A) that ld. CIT(A) while deleting the additions made by the AO on account of notional ALV on stock in trade in the first round, had only decided the legal ground on the said issue and had not considered it necessary to give his findings on the ground relating to quantum of ALV and on the question as to whether the ALV of property was assessable at all for the relevant assessment year being not ready for occupation. The ld. CIT(A) noted that for w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of addition on account of notional ALV in respect of unsold spaces in Ambadeep Building for periods prior to the receipt of the occupancy certificate. It was submitted that the ld. CIT(A) had erred in ignoring that the legal right to use the property was not relevant while considering the chargeability of notional income u/s 23(1) of the Income Tax Act, 1961. It was further submitted that on similar reasoning, the department was also contesting the deletion of addition of notional ALV in respect of unsold spaces in Palam Vyapar Kendra, unsold spaces in 38, Nehru Place, unsold spaces in Jyoti Shikhar building, and unsold spaces in Antriksh Bhawan. It was further submitted that the department was also contesting deletion of addition of notio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....heavily on the same, submitted that the ld. CIT(A) has adjudicated the issue after examining the entire controversy from the factual angle and this finding was not disputed by the department also, and therefore, the same should be upheld. Ld. AR also filed written submissions which have been taken on record. Ld. AR urged that the deletions made by the ld. CIT(A) were correct both on facts as well as in law and therefore, the adjudication by the ld. CIT(A) should be upheld. 5. We have heard the rival submissions and have perused the material on record. It is seen that the Hon'ble Delhi High Court has, on appeal by the department, vide order dated 2.10.2012, held against the assessee by observing that income tax will be leviable on a notiona....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of the Court is meritless. ALV is a method to arrive at a figure on the basis of which the impost is to be effectuated. The existence of an artificial method itself would not mean that levy is impermissible. Parliament has resorted to several other presumptive methods, for the purpose of calculation of income and collection of tax. Furthermore, application of ALV to determine the tax is regardless of whether actual income is received; it is premised on what constitutes a reasonable letting value, if the property were to be leased out in the marketplace. If the assessee's contention were to be accepted, the levy of income tax on unoccupied houses and flats would be impermissible - which is clearly not the case. 14. As far as the alterna....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e purposes of business. He went on to delete the addition by holding that car parking space was for the purposes of business and, therefore, the same should not be subjected to notional ALV. ii) Relief in respect of Akashdeep Building was given by the ld. CIT(A) by relying on the report of Asstt. Valuation Officer-II, New Delhi wherein the Valuation Officer had confirmed that the basement in the said building was being used as a common area. iii) Addition in respect of Dilkhush Bagh Indusrtrial Area was also deleted on the ground that the property in question was in an open space as capable of being used by any new or independent and exclusive use. Ld. CIT(A) based his finding on the report of the Asstt. Valuation Officer in this case a....