AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 847
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed rental income in respect of the vacant flat situated at Sapphire Park, Balewadi, Pune @ Rs. 15,000 per month and computing the Annual Rent Receivable for the said flat at Rs. 1,80,000/- and confirming the addition made by the AO on deemed rental income for the said flat at Rs. 1,26,000/- as against Rs. 8,60,445/- made by him. The Appellant submits that since the property has not been let out and the Appellant has not derived any benefit therefrom during the year the AO ought to have granted vacancy allowance under section 23(2) and compute the .Annual Value at NIL. The Appellant therefore prays that the entire addition of Rs. 8,60,445/- be deleted. 3. The assessee in an individual and well renowned cricketer earning his incom....
X X X X Extracts X X X X
X X X X Extracts X X X X
....owances. The assessee had also argued that the deemed annual value based on the realizable rent in respect of flat at Sapphire Park could be Rs. 1,35,000/- without prejudice to the argument that the annual value is required to be taken as nil. 5. The Assessing Officer rejected the assessee's explanation by commenting that the income offered alternatively by the assessee is too low and estimated the rental income @ 6% of the value of both the fiats aggregating to Rs. 1,43,40,750/- (Rs.82,80,750 + 60,60,000) as deemed rental income. Though the Assessing Officer had discussed regarding the house property income in respect of Sapphire Park on which no rental income was offered, however, while making addition the Assessing Officer has tak....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome Tax (Appeals) distinguished the case laws referred by the assessee. These case laws were as under: Premsudha Exports(P) Ltd. V/s.ACIT CC, Mumbai ([2008} 110 TTJ 158(Mum); Kamal Mishra V/s.Income Tax Officer [2008] 19 SOT 251 and ACIT V/s.Dr.Prabha Sanghi [2012] 27 Taxman.Com 317(Delhi) 7. However, the ld. Commissioner of Income Tax (Appeals) granted some relief to the assessee by holding that as per the information available on the website by name www.magicbricks.com, the probable rate for Sapphire Park should be Rs. 15,000/- per month. Accordingly, he directed the Assessing Officer to restrict deemed rental income from the flat at Sapphire Park to Rs. 1,26,000/- instead of Rs. 8,60,445/- computed by the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re the property or any part of the property is let57 and the actual rent57 received or receivable57 by the owner in respect thereof is in excess of the sum referred to in clause (a), the amount so received or receivable; or (c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the sum referred to in clause (a), the amount so received or receivable : 12. From the above provision of law, it can be construed that in case the property or part thereof was vacant during the period, the proportion deduction should be allowed from the sum on which the property ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s let out at any point of time even by any previous owner, it could be claimed that the property is let out property because the clause talks about the property and not about the present owner and since the property was let out in past, it is a let out property, although the present owner never intended to let out the same. Therefore, it is not at all relevant as to whether the property was let out in past or not. These words do not talk of actual let out also but talk about the intention to let out. If the property is held by the owner for letting out and efforts are made to let it out, that property is covered by clause (c) and this requirement has to be satisfied in each year that the property was being held to let out but remained vacan....