TaxTMI 
TaxTMI 
2025 (8) TMI 678
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....eads as under : 1. Income from house property: The learned Assessing Officer and the learned CIT(Appeals) failed to appreciate that the provisions of Section 22 and 23 were clearly not applicable on the facts and in the circumstances of the case and in law. It is submitted that even if the contentions of the learned Assessing Officer and CIT(Appeals) are accepted, the appellant is entitled to deduction for vacancy allowance under section 23(1)(c) of the Act as the said property remained vacant throughout the year. Without prejudice to the above, it is submitted that the income from house property is to be computed on the basis of municipal ratable value and it cannot exceed the same. It is submitted that the computation of....
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....s and added it under the head 'income from house property'. The assessee contested the addition by filing appeals before the First Appellate Authority and being unsuccessful thereafter before the Tribunal. While deciding the appeals, the Tribunal did not accept assessee's claim of deduction of vacancy allowance u/s. 23(1)(c) of the Act relying upon the orders passed by the Tribunal in assessee's case in earlier assessment years. However, accepting the without prejudice contentions of the assessee that the ALV has to be determined based on Municipal Ratable Value, the Tribunal restored the issue to the A.O. for determining the ALV following the guidelines framed by the Hon'ble Jurisdictional High Court in the case of CIT vs. Tip Top Typo....
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.... determine the ALV by strictly following the guidelines laid down by the Hon'ble Bombay High Court in case of Tip Top Typography (supra). 8. The learned Departmental Representative ('ld. DR' for short) relied upon the observations of the A.O. 9. We have considered rival submissions and perused the materials on record. While deciding assessee's appeal in the first round, the co-ordinate bench, in order dated 25.10.2019 passed in ITA No. 7372/Mum/2017 and 2210/Mum/2018, has held as under: 7. We have heard both the counsel and perused the records, Senior counsel on behalf of the assessee Shri J.D. Mistry contended that premee has not at all be let out during the concerned assessment year He submitted in several case ....
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....gh Court decision is binding upon the Tribunal As held by Hon'ble Supreme Court in the case of Saurashtra Kutch Stock Exchange Ltd. (225 ITR 234) consideration of Hon'ble Jurisdictional High Court decision will render the decision of the ITAT suffering from mistake apparent from record. Accordingly, in our considered opinion the issue in this regard needs to be examined on the touchstone of Hon'ble Jurisdictional High Court decision in the case of Tip Top Typography (supra) In the case of Tip Top Typography (supra), Hon'ble Jurisdictional High Court has held as under: "(i) We are not in agreement with the department that the municipal rateable value cannot be accepted as a bonafide rental value of the property and i....
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....be rejected. On a careful scrutiny of the assessment order, we have not found any material which could indicate that the A.O. had made any enquiry to ascertain the municipal ratable value of the property during the relevant assessment years. The A.O. has determined the ALV simply relying upon the earlier expired leased deed. Thus, we are of the firm view that the A.O. has not carried out the directions of the co-ordinate bench in letter and spirit. 11. In view of the aforesaid, we are inclined to set aside the impugned orders of learned first appellate authority and restore the issue to the A.O. for determining the ALV of the property strictly in terms with the guidelines framed by the Hon'ble Jurisdictional High Court in the case of....
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....at the disallowance u/s. 14A read with Rule 8D qua indirect expenses has to be made based on the investments which yielded exempt income during the year. In this context, we refer to the decision of the Hon'ble Delhi High Court in the case of Cargo Motors Pvt. Ltd. vs. DCIT [2023] 453 ITR 554 (Del). To avoid multiplicity of judicial precedent, we desist from referring to the other decisions expressing similar view. 18. Before us, ld. Counsel appearing for the assessee submitted that in course of proceedings before the First Appellate Authority, the assessee has furnished a working of disallowance considering investments which yielded exempt income during the year. The A.O. is directed to verify the working of the assessee and restrict th....