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TMI Blog2018 (4) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Since all these appeals pertain to the same assessee involving common issues arising out of identical set of facts and circumstances, except variation in figures, therefore, as a matter of convenience, these appeals were heard together and are being disposed-off by way of this consolidated order. 2. The solitary grievance of the Revenue in the present appeals relates to determination of annual letable value (ALV) of the house property. 3. Facts relating to the issue in dispute are more or less common in all these years. However, considering the fact that the substantive order of the Assessing Officer and learned Commissioner (Appeals) are for the assessment year 2012-13, we propose to deal with the facts emanating from the appeal bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Secretary of the Society where the flats were located, the Assessing Officer found that the flats in the same building having floor were of 2041 sq.ft. were let out for monthly rent of Rs. 3 lakh with interest free security deposit of Rs. 3 lakh. Another flat admeasuring 2330 sq.ft. was let out for monthly rent of Rs. 1.50 lakh with interest free security deposit of Rs. 3 crore. From the information available with him, the Assessing Officer concluded that in the area where assessee's flats were located, the monthly rental is in the range of Rs. 140 to Rs. 160 per sq.ft. Thus, invoking the provisions of section 23(1)(a), the Assessing Officer determined the ALV of the flat admeasuring 2,349 sq.ft. at Rs. 146 per sq.ft. and that of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was submitted, in the subsequent assessment year, the assessee was able to let out the flat and offered rental income to tax. Thus, it was submitted by the assessee, when the flats were capable of being let out but remained vacant during the relevant previous year, the assessee is entitled for deduction under section 23(1)(c) of the Act. In support of such contention, the assessee relied upon a number of case laws. The learned Commissioner (Appeals), after considering the submissions of the assessee in the light of the decisions relied upon, observed that the assessee was holding two properties out of which one is a self-occupied property. Referring to the provisions contained under sections 22, 23 and 24 of the Act and the judicial prec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be let out during the relevant previous year, the assessee was entitled to get deduction of ALV under section 23(1)(c) of the Act. In support of such contention, the learned Authorised Representative relied upon the following decisions:- i) ACIT v/s Dr. Prabha Sanghi, [2012] 139 ITD 504 (Del.); ii) Premsudha Exports Pvt. Ltd. v/s ACIT, [2007] 110 TTJ 89 (Mum.); and iii) Can Properties Pvt. Ltd. v/s ITO, M.A. no.323/Mum./2017 dated 26.12.2017. 8. We have heard rival submissions and perused material on record. Undisputedly, the flats in respect of which the Assessing Officer has determined the ALV under section 23(1)(a) remained vacant during the relevant previous year. It is evident, the Assessing Officer on the basis of info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him. Explanation.-For the purposes of clause (b) or clause (c) of this sub-section, the amount of actual rent received or receivable by the owner shall not include, subject to such rules as may be made in this behalf, the amount of rent which the owner cannot realise.‖ 9. A reading of the said provision reveals that where any part of the property is let out and was vacant during the whole or any part of the previous year and due to such vacancy rent received / receivable by the owner is less than the ALV determined under section 23(1)(a) in that case the actual rent received or receivable is to be treated as the ALV. Therefore, the issue to be considered is, whether the provisions of section 23(1)(c) is applicable or not. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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