2018 (1) TMI 1104

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.... assessment year, the assessee has not carried 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....

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....s Today Hotels Pvt. Ltd. for its business purpose. 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 ....

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....issue and the assessee made the same submissions 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 ....