2018 (1) TMI 895

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....of deemed gross rent of Rs. 7,92,000/- (Rs.33,000/- p.m) as against the actual casual gross rent received of Rs.?0,000/- during the short period which has resulted into an addition of Rs. 5,05,400/- after standard deduction u/s 24(a). 1.2 The said CIT(A) erred in not considering the fact and submissions of the Appellant that the said premises was leased for a casual short period and remained vacant during the whole year and therefore the annual letting value (ALV) has to be the actual rent received of Rs. 70,000/- as provided u/s 1.3 The said CIT(A) erred in not considering the following judicial decisions relied upon by the appellant: (i) Smt. Smitaben N Ambani Vs. CWT 323 ITR 104 (Bom) (ii) Premsudha Exports (P) Ltd., Vs. ACIT 11....

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....1,000/- to Rs. 40,000/- P.M. as inquired by the Inspector of the said A.O. 5. By the impugned order, CIT(A) confirmed the action of the AO against which assessee is in further appeal before us. 6. It was argued by learned AR that AO has not considered the fact that no agreement for leave and license was entered into since it was a casual lease for a shorter period. As per learned AR, the said A.O. also erred in not considering the fact that after vacation, by the said contractor, the assessee had not let out the said office premises to anyone. Therefore, it is submitted that no notional rent income can be added U/sec 23 when the said commercial premises remained vacant during the year under appeal and therefore, the annual letting value (....

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....hypothetical tenant, the amount of statutory deduction, if any, permissible under the local municipal law must be added to the ratable value. Thus, while applying provisions of rule 1BB fox valuing the self-occupied property, municipal ratable value with addition of statutory deductions, if any, may be adopted instead of standard rent for arriving at the gross maintainable rent. 8. Reliance was also placed on the decision of GMP Investment Ltd., 50 SOT 180 wherein following was the observation of Mumbai Tribunal:- "7. We find that section 22 categorically provides .............. The next question then is as to on what basis should the annual letting value be computed. So far as a property which is not let out or vacant is concerned, the....