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TMI Blog2020 (6) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ir rental value for the period when the property was vacant. Therefore, I direct the AO to recompute the income from this property by adopting the rent paid by the party before the said property was vacated as fair rental value. Thus, Grounds No. 2 3 are partly allowed. Income from the property - assessee submitted that there was a dispute with the tenant with regard to the rent and the assessee has filed a suit for eviction and also recovery of rent from the tenant - HELD THAT:- Assessee has not received the rent from the property during the relevant AY and has also filed a suit in O.S.No.408 of 2009 in the Court of XI Addl. Chief Judge, City Civil Court, Hyderabad for eviction of the tenant and for recovery of rent. It is the case of the assessee that the assessee has paid taxes on the receipt of the arrears of rent in AY 2013-14. In this connection, the assessee has referred to the computation of income for the AY 2013-14 which is available in the paper book to demonstrate that the assessee has paid tax on the same. Direct the AO to verify the same and if it is found that the assessee has offered the income to tax in the subsequent AY 2013-14, then, no addition of the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other income which has already been offered to tax, and only the balance is directed to be brought to tax. This ground is accordingly partly allowed. - ITA Nos. 1842 And 1843/Hyd/2017 - - - Dated:- 24-6-2020 - Smt. P. Madhavi Devi, Judicial Member For the Assessee : Shri S. Rama Rao For the Revenue : Smt. K.J. Divya ORDER Both the appeals are filed by respective assessees against the separate orders of CIT(A) 12, Hyderabad, both dated, 07/08/2017, respectively. Both the assessees are brothers and the issues involved in these appeals are common and, therefore, they were heard together and are disposed of by this common and consolidated order. 2. For the sake of convenience, the facts from the case of assessee, Shri S.M. Qutubuddin are taken into consideration. The assessee filed his return of income for the AY 2011-12 on 31/12/2011 declaring total income of ₹ 9,96,935/-. During the assessment proceedings u/s 143(3) of the Act, the AO has noticed that the assessee has shown 8 properties as belonging to him and his brothers and after retaining one house for self-occupation, the assessee has offered income from 4 properties and for the balance 3 prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting that the assessing officer has adopted the value of the appellant's share 1/1 o property even though the entire income was brought to tax in the hands of the appellant, on the facts and in the circumstances of the case. 4. The Learned Commissioner of Income-Tax erred in confirming the add it ion of ₹ 90,216 being entire income from Ground Floor of property bearing no. 8-2-596/5/B/1, Banjara Hills, Hyderabad less deduction under section 24(a),on the facts and in the circumstances of the case. 5. The Learned Commissioner of lncome-Tax erred in not appreciating the fact that the appellant had only 1/6 th share in the income from the Ground Floor of property, bearing no. 8-2-596/B/1 situated at Banjara Hills, Hyderabad, on the facts and in the circumstances of the case. 6. The Learned Commissioner of Income-Tax further erred in not appreciating the fact that there was a dispute with the tenant and as such he was not paying rent to the appellant and the amount received by the appellant has been duly disclosed during the previous year relevant to the assessment year 2013-14 , on the facts and in the circumstances of the case. 7. The Learned Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequent year for a short duration and, therefore, the rent paid by the company in the earlier years alone should have been adopted as fair rental value without any hike of 10% and only his share of such income should have been treated as assessee s income. 5. The ld. DR, on the other hand, supported the orders of the authorities below and submitted that the rental agreement itself shows that the property, which was taken on rent was a godown and not just land as argued by the ld. Counsel for the assessee. Therefore, according to him, the AO has rightly computed the fair rental value and has rightly treated the income as income from house property and has brought it to tax. 6. Having regard to the rival submissions and material on record, I find that the property, which has been let out by the assessee is not just open land, but, with a shed thereon, which is treated as a godown. In the schedule of rental deed, it is mentioned that godown is built on a plot admeasuring 1000 sq. meters and therefore, income from such godown has rightly been treated as income from house property and even in the earlier years, the income received from the same godown has been offered / treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 10. As regards ground No. 10 relating to agricultural income, the ld counsel for the assessee submitted that the total land owned by the family was around 97 acres, in which, coffee bean was grown and also various other crops, such as, cardamom, pepper, paddy, etc. were grown. The ld. Counsel for the assessee submitted that the AO has considered the income from coffee bean alone as agricultural income and has disallowed the balance claim of the assessee. He submitted that the assessee had declared agricultural income in the earlier years, which has been accepted the AO and similar income even in the hands of the co-owners has been accepted by the AO. . He further submitted that the year before us is the year in which the sale of agricultural land has taken place and the assessee has received income from other crops in the land, which should have been accepted by the AO as agricultural income. 11. The ld. DR, however, contended that the assessee has not given any proof of other crops grown in the agricultural land from which assessee has received any income. She, therefore, prayed that the order of the AO be confirmed on this issue. 12. Having regard to the rival submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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