TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 804
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....cer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'), dated 24.12.2019. 2. The grounds of appeal raised by the assessee are as follows: "1. NATURAL JUSTICE 1.1 It is submitted that, in the facts and the circumstances of the case, and in law, the appellate order so framed be held as bad and illegal, as: (i) The same is framed in breach of the principles of natural justice; and (ii) The same is perverse, passed without application of mind to the facts on record. 1.2 Without prejudice to the generality to the above, in the facts and the circumstances of the case, and in law, the order is bad in law as: (i) The same is passed without granting proper, sufficient and adequate opportunity of bein....
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....e, vide letter of assessing officer dated 22/12/2019, the assessee was asked to furnish the detail of amount of Rs.25,92,000/- shown as rent receipts in form 26AS and was show caused why the amount should not be added to his income, since he has not shown the income in its return. Content of the show-cause letter of AO is as under: "On perusal of your submission, it is seen that you have not shown house property receipts of Rs.25,92,000/- received from ICICI Bank, in your return of income. In this regard, please furnish the reason for this discrepancy alongwith supporting documentary evidences. Falling to provide the requisite details with supporting documents, you are Hereby show caused why the amount of Rs.25,92,000/- shown in 26AS as h....
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.... the matter in appeal before the ld. CIT(A), who has confirmed the action of the Assessing Officer. The ld CIT(A)noted that assessee has not submitted any proof that the property was vacant during the year and the assessee had not claimed any vacancy allowance as per section 23(1)(c) of the Act. Under these circumstances in the facts of this case the AO's action to adopt gross annual value from the said property to be at Rs.71,84,700/- on par with the actual rental receipts received from the same property, during the earlier FY is found to be reasonable on the quantum estimated and is in accordance with the law. Therefore, ld CIT(A) held that this notional rent, gross annual value (GAV) adopted by the AO was correct. 6. Aggrieved by th....
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....tal income for AY.2016-17 and the rent paid to the assessee is also getting reflected in Form No.16. The Ld. Counsel also submitted the computation of total income (vide page no.7 of paper book) wherein the Ld. Counsel contended that assessee has offered rental income for eighteen days in respect of property at Rs.4,55,532/- and also stated that relevant TDS has been deducted by ICICI Bank (vide paper book page no.8). The assessee also submitted the copy of the tax paid to the municipality in respect of the property. The Ld. Counsel also took us through the agreement between the assessee and the ICICI Bank which is placed at paper book page no.14, wherein the rent schedule has been shown. The Ld. Counsel also produced before the Bench elect....
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....ved the sum of Rs.4,55,532/- for assessment year 2017-18, towards rent from the relevant property for the period 01.04.2016 to 18.04.2016. The relevant rent income received has been offered to tax by the assessee as per the computation reproduced below: 10. Thus we note that assessee has offered gross rent received of Rs.4,55,532/- from this relevant property for the F.Y.2016-17, relevant to the AY.2017-18. Against this the AO has presumed and assessed the Gross annual value at Rs.71,84,700/- in the assessment year 2017-18, as the notional rent. That is, assessing officer has taken Gross annual value at Rs.71,84,700/- in the assessment year 2017-18, on hypothetical basis, instead of actual Gross annual value at Rs. 4,55,532/- (actual rent ....