9911796707
TMI Blog2023 (4) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... Based on this factual position, the assessee has received the rental as rent income only for eighteen days in the AY.2017-18 which has already been offered for tax on which TDS has also been deducted. Therefore, since the assessee has not received rental income from 19.04.2016 to 31.03.2017, hence, hypothetical rent should not be taxed in the hands of the assessee. Therefore, we note that assessee has disclosed the actual rent received by him, therefore fictitious rental income should not be taxable in the hands of the assessee. Neither the AO nor before the Ld. CIT(A) has demonstrated with cogent evidences that assessee has let out the property for the remaining period from 19.04.2016 to 31.03.2017. Therefore the notional rental income assessed by the AO should be deleted - Appeal filed by the assessee is allowed. - ITA No. 245/SRT/2022 - - - Dated:- 17-4-2023 - Shri Pawan Singh, JM And Dr. A. L. Saini, AM For the Appellant : Shri Saurabh Soparkar Sr. Advocate with Ms. Urvashi Shodhan, Advocate For the Respondent : Shri Ashok B. Koli, CIT(DR) ORDER PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO noted that assessee had received rent of Rs.25,92,000/- from ICICI Bank Limited, however the same was not shown in house property income of the assessee. Therefore, vide letter of assessing officer dated 22/12/2019, the assessee was asked to furnish the detail of amount of Rs.25,92,000/- shown as rent receipts in form 26AS and was show caused why the amount should not be added to his income, since he has not shown the income in its return. Content of the show-cause letter of AO is as under: On perusal of your submission, it is seen that you have not shown house property receipts of Rs.25,92,000/- received from ICICI Bank, in your return of income. In this regard, please furnish the reason for this discrepancy alongwith supporting documentary evidences. Falling to provide the requisite details with supporting documents, you are Hereby show caused why the amount of Rs.25,92,000/- shown in 26AS as house property receipts should not be added to your total income for the year. 4. The assessee filed his submission, in response to the show cause and submitted that the rent income shown in Form 26AS from M/s ICICI Bank Limited is actually rent for earlier year, which is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the previous year, the assessee has shown a full rent, however during the year the ICICI Bank occupied the property only for eighteen days and rent was paid to the assessee for 18 days, which the assessee has offered for taxation. The Assessing Officer treated, as if the assessee has let out the property for the whole year. Therefore, Assessing Officer without accepting the claim of the assessee, assessed the rental income for the entire assessment year 2017-18 instead of assessing the rent for 18 days for assessment year 2017-18. However, for the period 01.04.2016 to 18.04.2016 (18 days period) relevant to AY.2017- 18, as the assessee received rent for eighteen days, which has been shown by the assessee and offered to tax. The Ld. Counsel submitted that assessee could not let out the property after 18.04.2016, as assessee, could not get the customer. The Ld. Counsel took us through paper book page no.3 wherein the ICICI Bank has given a notice for termination of lease deed and contended that the termination letter of the ICICI Bank shows that rent agreement has been terminated with effect from 18.04.2016. The Ld. Counsel also invited the attention of the Bench at page no. 5 and 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty for the period 01.04.2016 to 18.04.2016. The relevant rent income received has been offered to tax by the assessee as per the computation reproduced below: 10. Thus we note that assessee has offered gross rent received of Rs.4,55,532/- from this relevant property for the F.Y.2016-17, relevant to the AY.2017-18. Against this the AO has presumed and assessed the Gross annual value at Rs.71,84,700/- in the assessment year 2017-18, as the notional rent. That is, assessing officer has taken Gross annual value at Rs.71,84,700/- in the assessment year 2017-18, on hypothetical basis, instead of actual Gross annual value at Rs. 4,55,532/- (actual rent received by the assessee in the assessment year 2017-18). We note that as per agreement, the assessee s premises situated at office no.7, 8 and 9, 3rd floor, Suyog Platinum Tower Apartment Naylor Road, Taluka Haveli, Dist. Pune, was leased for a period of 9 years for the purpose of operating and running the bank branch. As per the terms and conditions of the agreement, vide Clause No.8 of the said agreement, by which the lessee may terminate the said agreement anytime during the currency of the said agreement by giving a prior w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
