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TMI Blog2022 (7) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... Year under consideration for a meagre amount of Rs.5,500/- per annum as rent. The assessee was neither able to explain such disproportionate amount in rent received neither before the Sub-ordinate Authorities, nor before this Tribunal. Assessee was repeatedly saying that it is for the AO to prove why there has been such discrepancy in the rent amount. The legal scenario is very clear that once such a discrepancy has been demonstrated and examined by the Department, the onus is on the assessee to establish the reasons for such disparity in rental income. AO has not considered any outside property comparable rents nor has taken into consideration any other extraneous circumstances, but has only considered the disparity of rent in assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CHAUDHURY , JM : This appeal preferred by the assessee emanates from the order of ld.Commissioner of Income Tax(Appeals)-7, Pune dated 16.10.2017 for the Assessment Year 2014-15, as per the grounds of appeal on record. 2. The solitary grievance of the assessee, in this appeal is the addition of Rs.16,89,243/- to the Income from House Property by the Assessing Officer(AO) and as sustained by the ld.CIT(A). The relevant facts in this regard are that during the year under consideration i.e. F.Y.2013-14 relevant to A.Y. 2014-15, the assessee has shown House Property Income from property at Sindh Society, Pune for Rs.5,500/- for the entire year. Property was let out to the Daughter of the assessee Ms.Gauri Kirloskar. Further, on perusal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritten submissions. The assessee contended that the earlier ALV of Rs.22 lakhs cannot be Fair Rental Value as the tenant at that time was a Corporate Entity and Municipal Corporation has estimated rent at Rs.6,140/-. The assessee contended that provisions of section 23(1)(b) of the Act was applicable and relied on the decision of Hon ble Bombay High Court in the case of CIT vs Tiptop Typography 368 ITR 330 (Bom). The ld.CIT(A) observed that the AO has computed ALV on the basis of actual rent received by the assessee for Six Months during the A.Y.2013-14 for the same property. It was further observed that though the assessee had submitted relatable value from the Municipal Authorities of Rs.6,140/-, which is lesser than the Actual Rent recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LV determined under section 23(1)(b) of the Act, then the actual rent receivable is the ALV of the property. In case of the assessee, the AO has not picked up any extraneous data to compute the ALV, but has only considered what has been shown by the assessee in form of actual rent received for Six Months during the F.Y. 2012-13 relevant to A.Y. 2013-14. In such circumstances, the amount of rent receivable computed by the AO of Rs.24,20,000/- for the A.Y. 2014-15 cannot be faulted with. The Municipal Valuation does not help the assessee in view of the specific provisions of section 23(1)(b) of the Act. The ld.CIT(A) further observed that in the case of the assessee, the Fair Market Rent was at Rs.24,20,000/- which was based on the Fair Mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same property was let out to the Daughter of the assessee in F.Y. 2013-14 relevant to the present Assessment Year under consideration for a meagre amount of Rs.5,500/- per annum as rent. The assessee was neither able to explain such disproportionate amount in rent received neither before the Sub-ordinate Authorities, nor before this Tribunal. The ld.AR of the assessee was repeatedly saying that it is for the AO to prove why there has been such discrepancy in the rent amount. The legal scenario is very clear that once such a discrepancy has been demonstrated and examined by the Department, the onus is on the assessee to establish the reasons for such disparity in rental income. The AO has not considered any outside property comparable rents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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