2018 (1) TMI 1104

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....rried out any business activity. It was further seen that the assessee owned office space number A-1601 & B-1601 having total super built up area of 5402 ft. alongwith 2 terraces administering 1256 ft appurtenant to the said offices located in 16th Floor, Statesman House, B-148, Barakhamba Road, New Delhi alongwith 6 car parking spaces in the lower basement. It was also seen that this premise was being used by various group concerns of the Today Group namely M/s today Hotels Pvt. Ltd; M/s Today Hotels (New Delhi) Pvt. Ltd.; M/s Today hotels (Noida) Pvt. Ltd; M/s Today Hotels (Andhra) Pvt. Ltd; M/s Today Hotels (Chandigarh) Pvt. Ltd; M/s Today Hotels (Karnataka) Pvt. Ltd; M/s Today Hotels (Maharashtra) Pvt. Ltd.; M/s Today Hotels (Punjab) Pv....

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....pose. During the course of search, no business activities of the assessee were found to be carried out from this premise. M/s Today Hotels Pvt. Ltd. has paid maintenance and electricity bills of the entire space. The AO, therefore, held that the assessee has let out the entire area to M/s Today Hotels Pvt. Ltd. and other group concern of M/s Today Group. The AO following section 22 & 23 of the Income Tax Act, 1961 computed annual value at Rs. 68,31,000/- and after giving deduction u/s 24 of the Act, computed total taxable income at Rs. 47,81,770/- under head "House property". 5. The assessee challenged the addition before the Ld.CIT(A). The assessee reiterated the same facts as were submitted before the AO. It was submitted that the assess....

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....that it has leased out approximately 1/3 of the total area in disputed property. The AO held that M/s Today Hotels Pvt. Ltd. had made payment of Rs. 13,11,048/- towards maintenance charges on behalf of assessee for utilization of the area. The same was treated as fair rental value of the area used by M/s Today Hotels Pvt. Ltd. and income from house property was accordingly computed on the same after deduction. He has further submitted that in AY 2011-12, the same matter reached to ITAT, Delhi Bench in the case of the assessee in ITA No.2954/Del/2016 and the Tribunal vide order dated 07.12.2016 restored the matter back to the file of the AO for reconsideration. In this year also, the assessee pleaded that only 1/3 of total space has been use....