9911796707
TMI Blog2023 (1) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... he plea that identical facts were appreciated by the ITAT in the aforesaid order. Decide the issue in favour of the assessee. Addition of jewellery found in premises of the assesse - CIT-A held that sources of the jewellery have remained to be explained and accordingly, the ld. AO has rightly taxed it in the Assessment Year 2014-15 - HELD THAT:- We find that on a query as to whether there is any evidence of the source of investment and the mode of payment, the ld. Counsel fairly accepted that these cannot be substantiated. In this view of the matter, in our considered opinion, the assessee has been granted reasonable relief by the AO. The addition sustained is appropriate, hence, we do not find any infirmity in the order of the Revenue authorities in this regard. - Decided against assessee. - ITA. Nos. 2004 & 2005/Del./2017 - - - Dated:- 17-1-2023 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND MS ASTHA CHANDRA , JUDICIAL MEMBER For the Assessee : Shri Rajesh Malhotra , CA Ms Shivangi , Advocate For the Revenue : Shri T. James Singson , CIT , DR ORDER PER SHAMIM YAHYA , A. M. These are appeals filed by the assessee against the common order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... located property, ITAT has found the reasonable cause for not putting the property on rent, it was sufficient to permit the assessee to get away from the rigors of notional rent. 8. Per contra, the ld. DR relied upon the orders of the authorities below. 9. Upon careful consideration, we note that the submissions of the assessee s counsel is that there was a sealing drive in the locality, so, it was difficult to find tenant and this was the reason the property could not be let out. It is the plea that identical facts were appreciated by the ITAT in the aforesaid order. We find that on similar facts, the ITAT in the aforesaid decision has adjudicated the issue as under:- 5. Appreciating the matter on record and the contentions of the Ld. AR and ld. DR it can be observed that there is no dispute with regard to two material facts. The first being that the property was commercial in nature and second that the property remained vacant during the relevant financial year 2012-13. The foundation of the case of assessee is an affidavit dated 26.11.2016 which was submitted in the form of additional evidence before the Ld. First Appellate Authority and which after being admitted und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Capital. 6.1 However, the ld. Tax Authorities failed to take into consideration, these minutes which substantially indicated that there was a genuine dispute in the locality where the property of assessee was situated with regard to failure of owners of the property to comply with municipal laws concerning structural and fire safety. The Lower Tax Authorities and specially the Ld. AO while submitting the remand report had fallen in error in observing that as the building of assessee was not one of those buildings which were referred in the minutes as partly demolished therefore, he was not to be benefited due to the minutes of the meeting. The bench is of considered opinion that meeting was not just about partially demolished buildings but the issue discussed and relevant in the meeting was the demolition drive and ceiling of the building by the Government for non compliance of structural and safety norms by the building owners in the said locality. The same deserved due consideration at the end of tax authorities as assessee had put a claim in the affidavit that due to demolition drive and sealing of the building by the Government in the locality he failed to get ten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issues with regard to demolition drive and sealing in the area making it not worthy of being taken on rent for any commercial purpose. 8. This Bench is of considered opinion that the legal disability created by the action of municipal authorities or under course of law, restricting the rights of the property holder to let out the property is a case where provision of Section 23(1)(c) would not be applicable. 9. In this context, the view is confirmed by looking back to Section 23(1)(c) of the Act, which provides that; (c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the sum referred to in clause (a), the amount so received or receivable 9.1 The word receivable refers to the payment not being realised. The use of word receivable in Section 23(1)(c) of the Act, indicates that there should be, not mere possibility of receiving the rent, but rent can become payable in all the probability, as the property is available for being given on rent. Then it can be considered to be rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng years. The assessee has also not filed her wealth tax return in any of the preceding years. Hence the claim of the assessee that all the jewellary was purchased prior to block period has no weight. However, keeping in view that the assessee belongs to a well to do family and is a married lady, jewellary valuing Rs. 15,00,000/- (i.e. approx value of 500 gram jewellary) is being considered as her stridhan/gift from family members. Remaining jewellary of Rs. 50,70,190/- (Rs. 65,17,190/- less Rs. 15,00,000/-) is being added to the total income of the assessee. Since, during the search action, unexplained investment in jewellary was found from the possession of the assessee, I am satisfied that the provisions of section 271AAB of the Act are clearly attracted in this case. Accordingly penalty proceedings u/s 271AAB of the Act are to be initiated on this issue separately. 13. Upon assessee s appeal the ld.CIT(A) confirmed the addition. The ld. CIT(A) s order in this regard may be gainfully read as follows:- 6.7 Before me, ld. AR argued that the AO has rejected the bills without any reason. This argument is not correct. The bills have been treated to be unreliable for the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
