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TMI Blog2014 (7) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... hands – Decided against Assessee. Annual letting value of adjacent self-occupied house property – Held that:- There were two agreement for the flats no. 1301 and 1302 for the residential property situated at Hurray Nirmal Lifestyle - the assessee has made a claim that they were being used a single unit, that they had common entrance - AO had made no inquiry in this regard at the time of assessment – thus, the matter is liable to be remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee. Annual value of self-occupied house property – Held that:- The AO and the FAA have not denied the fact the property remained vacant for the year, that the AO had adopted ALV based on cost of acquisition of the property, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the income of the assessee. 2. On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming addition of ₹ 1, 94, 745/- being annual letting value of the adjacent self occupied house property treating it as a separate house property. 3. On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming addition of ₹ 3, 36, 000/- as annual value of the self occupied house property. 4. With out prejudice to ground no. 2 and 3, the Ld CIT (A) erred in confirming the action of A. O in adopting the notional rental income @ 12% of the cost of acquisition which is unrealisable and much on higher side as compared to the actual rent received in the market 5. On facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. 1. During the course of appellate proceedings, before the First Appellate Authority(FAA), it was submitted, regarding Oberoi Gardens, that the said premises was rented out to M/s Kirloskar Chillers Pvt. Ltd and there was a requirement of the lessee that the lessor should be a corporate entity, that the premises were rented through CPSPL, that the rental income was duly offered to tax at maximum rate in company s return. After considering the submissions of the assessee and the assessment order, FAA held that the assessee was the owner of the House Property that was let out to M/s Kirloskar Chillers Pvt. Ltd M/s Kirloskar Chillers Pvt. Ltd, that the income had to be assessed in the hands of the assessee and not in the hands of CPSPL. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty was to be assessed in his hands. Confirming the orders of the FAA, we decide ground no. 1 against the AO. 3. Second ground of appeal is about addition of ₹ 1, 94, 745/- being annual letting value(ALV) of the self occupied house property. During the assessment proceedinsgs, the AO found that the assessee had two residential flats at Hurrah Nirmal Lifestyle i. e. Flat No. 1301 and 1302 and value of each flat was ₹ 23, 18, 400/-. He held that as per provisions of Act assessee could take only one flat as SOP and another flat had to be considered as deemed let out. Assessee submitted that though there were two agreements however both were joint property and same were being used as single unit. But, the AO did not accept the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had made no inquiry in this regard at the time of assessment. Therefore, in the interest of justice, we are remitting back the matter to the file of the AO for fresh adjudication. He is directed to make physical verification of the property through his inspector to find out as to whether the residential unit is one or not. He would decide the issue after hearing the assessee. Ground no. 2 is decided in favour of the assessee, in part. 4. Next ground of appeal pertains to addition of ₹ 3, 36, 000/- as annual value of the self occupied house property. During the assessment proceedings, AO found that the assessee had also offered income from a residential property at Sun Glow located at Powai at ₹ 14, 698/- by taking municip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the fact the property remained vacant for the year under appeal, that the AO had adopted ALV based on cost of acquisition of the property, that the assessee had taken Municipal ratable value for ALV purposes. In our opinion, method adopted by the assessee was as pert law. As the property remained vacant , so, adopting municipal ratable cannot be termed incorrect method of calculating House property income. Therefore, reversing the order of the FAA, we decide ground no. 3 in favour of the assessee. 5. Last ground of appeal is about addition of ₹ 1. 02 lakhs on surrender of LIC pension policy. During the course of assessment proceedings, AO observed that assessee had received an amount of Rs. l, 08, 044/-by surrendering lifetime pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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