2021 (1) TMI 411

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....Income-tax (Appeals)-38, Delhi qua the assessment year 2013-14 on the ground that :- "On the facts and under circumstances of the case, the Ld. CIT (A) has erred in directing the AO to calculate the Gross Annual Value (GAV) from 14.12.2012 to 31.03.2013 which is violation of section 23 (1) of the I.T. Act, 1961 which is a deeming and Gross Annual Value (GAV) is to be calculated on year to year basis." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessing Officer (AO) made addition of Rs. 4,20,91,300/- while calculating income from house property on the ground that the assessee has failed to furnish any detail in this regard and as such, 10% of the cost of assets is being deemed to be t....

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....t on the ground that it is violation of section 23(1) of the Act which is deeming and GAV is to be calculated on year to year basis. 7. We have perused the order passed by the ld. CIT (A) who has thrashed the facts qua the issue in question in the light of the case law relied upon by the parties to the appeal and has found that GAV has not been computed in accordance with the provisions of section 23(1)(a) of the Act. 8. For ready perusal, provisions contained u/s 23(1)(a) of the Act are extracted as under :- "23. (1) For the purposes of section 22, the annual value of any property shall be deemed to be- (a) the sum for which the property might reasonably be expected to let from year to year; or 9. Perusal of the ....

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....builder M/s Wadhwa Group Holdings Private Limited. This property was under construction in FY 2011-12 and was disclosed by appellant under the head 'Capital Work in Progress' in its audited financial statements for that year. Subsequently, the appellant on April 11, 2013 i.e. in AY 2014-15 received a letter dated March 30, 2013 from M/s Wadhwa Group Holdings Pvt. Ltd., the owner of the aforesaid building, stating that as they had obtained the occupation certificate from Mumbai Metropolitan Region Development Authority ("MMRDA") till the 17th Floor of the building on December 14, 2012, the appellant was granted permission to occupy the 10th floor of the building w.e.f.. March 30, 2013. Further, as the said property was acquired by th....