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TMI Blog2021 (12) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax-17(2)(hereinafter referred to as ld. AO). 2. The assessee has raised the following grounds:- "1. On the facts and circumstances of the case and in Law the Learned Commissioner of Income Tax (Appeals) erred in disallowing the benefit under section 23(2) of the Act to the residential house purchased and used as one residential unit for self use and thereby erred in disallowing the loss of Rs. 150000 from income from self occupied house. 2. On the facts and circumstances of the case and in Law the Learned Commissioner of Income Tax (Appeals) erred in holding that the Appellant did not attend the appeal fixed for hearing on 18.3.2020 and 05.8.2020 without appreciating the fact that there was lockdown and the Appellant did not recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for hearing to the Appellant and giving real and sufficient opportunity to defend." 3. We have heard rival submissions and perused the material available on record. We find that assessee is an individual and had filed his return of income for the A.Y.2011-12 on 21/01/2012 declaring total income of Rs. 20,79,861/-. The ld. AO observed that the assessee has shown loss of Rs. 1,50,000/- under the head 'income from house property'. He observed that since assessee had two properties and interest component against loan taken was claimed as loss of Rs. 1,50,000/- and that the interest certificate for housing loan showed that the loan was taken for two house properties. Since, the assessee could claim deduction towards interest of housing loan o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the entire house; there is only one kitchen for the entire house. The combined flats were booked together during construction with the builder. Accordingly, he pleaded that the combined two flats should be construed as one residential house. 3.3. We find that the ld. AR placed reliance on the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. Devdas Naik in Income Tax Appeal No.2483 of 2011 dated 10/06/2014 wherein the similar issue has been addressed in favour of the assessee. We find that though this decision of the Hon'ble Bombay High Court was rendered in the context of claim of deduction u/s.54 of the Act, the analogy could be drawn from the same and applied to the facts and circumstances of the instant case f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Ahuja, a substantial question of law arises for determination. 4. We are unable to agree. We found that the evidence based on which the claim was granted by the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal has been noted by the Tribunal in paragraph 4 of its order. Prior thereto, the factual position has also been noticed that the Assessee alongwith his wife jointly owned bungalow. The bungalow was sold at Rs. 3/- crores. With this sum, they bought three flats, one in the Assessees name, another in the name of Assessee and his wife and third in the name of the wife. The Assessee claimed deduction under section 54 on purchase of two flats in which he is either a sole owner or a joint owner. Though these fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the conclusion is in any way impossible or improbable so as to entertain this Appeal. In this peculiar factual backdrop, this Appeal does not raise any substantial question of law. The Appeal is devoid of any merit and is dismissed. No order as to costs." 3.4. Undisputedly in the instant case before us, both the Flat Nos.1502 and 1503 have got only one kitchen and there is only one entrance in the entire house. In view of these undisputed facts and respectfully following the aforesaid decision of the Hon'ble Jurisdictional High Court, we hold that both flats should be construed as one residential house and annual value of the same should be determined at nil being self-occupied house property. Accordingly, the addition made by the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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