9911796707
TMI Blog2022 (2) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... Accountant Member For the Appellant : S.B. Gupta, CA For the Respondents : Hemant Gupta, Sr. DR ORDER Per Dr. B. R. R. Kumar, Accountant Member The present appeal has been filed by the assessee against the order of the ld. CIT(A)-20, New Delhi dated 27.03.2018. 2. Following grounds have been raised by the assessee: 1. That the addition of ₹ 10,46,249 on account of Deemed Rent of house properties lying vacant for whole of the year is illegal and unjustified and, therefore, ought to be deleted. 2. Without prejudice to the above, the computation of deemed rent of ₹ 10,46,249 calculated @ 5% of investment in house property is not in conformity with the annual value of house determined as per municipal valuation and therefore, the excess of ₹ 10,46,249 over such annual value as per municipal valuation is illegal and unjustified and ought to be deleted. 3. That the Commissioner (Appeal) erred in not deciding the issue raised by the assessee that deemed annual value of house property cannot exceed the annual value of house determined as per municipal valuation and therefore, the order passed by the Commissioner (Appeal) is illegal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be let out, actually let out in succeeding year and never in self-occupation of assessee, was Nil by virtue of section 23(1)(c). 8. The ld. CIT(A) rejected the assessee's contention on the ground that the properties were not let in past years and letting in future years does not entitle the assessee to relief granted in section 23(1)(c). 9. Aggrieved the assessee filed appeal before us. 10. The assessee submitted that section 23 wherever uses the phrase is let includes deemed to be let (term used in section 23(4)(b)) and actually let [term used in section 23(3)(a)]. The legislature in its wisdom has used these two phrases - is let , and actually let - in different context and meaning. Had the Parliament intended to mean is let as is actually let , there would have arisen no occasion to use the phrase actually let in section 23(3)(a) instead of is let used in section 23(1)(b) and 23(1)(c). Moreover, use of phrase actual rent received after is let in the section 23(1)(b) and 23(1)(c) points out that the legislature well considered a situation where the property is let without actual rent received or receivable. It thus means that is let is cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(ix), which provided for vacancy allowance upto AY 2001-02 against computation of annual value of a house property remaining vacant. Section 24(1)(ix) was deleted from statute vide Finance Act, 2001 and simultaneously section 23(1)(c) was inserted. Prior to deletion, section 24(1)(ix) read as - where the property is let and was vacant during a part of the year, that part of the annual value which is proportionate to the period during which the property is wholly unoccupied or, where the property is let out in parts, that portion of the annual value appropriate to any vacant part, which is proportionate to the period during which such part is wholly unoccupied. A perusal of section 24(1)(ix) shows that the legislature considered the words vacant and unoccupied as synonymous. The sub-section provided that where a property was let out for a part of the year and remained vacant or unoccupied for the remaining part of the year, the annual value of such property was to be reduced proportionate to the period for which it remained vacant. This allowance was termed as vacancy allowance. A bare perusal of section 24(1)(ix) clearly shows that it did not contain the phrase during the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Hence, the properties fall in aforesaid Situation I and, therefore, the annual value shall be Nil . 14. It was argued that even if the annual value is to be computed u/s. 23(1)(a), i.e., ALV or fair value, based upon various High Court orders, the assessee submitted that the annual value can never exceed the municipal value and/or standard rent determinable under the provisions of the relevant statute. 15. It was argued that to prove the municipal value, assessee submitted copy of property tax challans and property tax returns of the said two immovable properties. As per said evidences, the annual value of the properties situated at (i) 32, Sector-15, Sonepat, Haryana-132302 and (ii) DTJ-120, 1st Floor, Jasola Tower-B, Jasola, New Delhi-110025 came to ₹ 16,000/- and ₹ 52,698/- respectively, totaling to ₹ 68,698/-. 16. The assessee further submitted that actual rent realized by the assessee in FY 2016-17 of the said two properties situated at (i) 32, Sector-15, Sonepat, Haryana-132302 and (ii) DTJ-120, 1st Floor, Jasola Tower-B, Jasola, New Delhi-110025 was ₹ 110,400/- (₹ 9200 per month) and ₹ 1,44,000/- (₹ 12000 per mont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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