RAVI K SHETH ,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX -5(3)(1), MUMBAI

ITA 1907/MUM/2025Status: DisposedITAT Mumbai16 September 2025AY 2017-18Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)6 pages
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What did the Tribunal hold?

The Tribunal held that for vacant properties not let out, rental income should be calculated based on the municipal rateable value, following High Court decisions. The addition made by the Assessing Officer was directed to be restricted to the municipal valuation for the relevant period.

What were the facts?

The assessee inadvertently omitted to compute deemed rent for a flat gifted to his son. The Assessing Officer treated the flat as deemed let out and calculated income based on market rent, increasing it notionally. The assessee argued for using municipal valuation, citing precedents.

What were the issues?

Whether deemed rental income for a vacant property should be based on market rent or municipal valuation. Whether earlier judicial precedents and High Court decisions should be followed.

Which sections of the Income-tax Act were involved?

Section 23(1)(a),Section 23(4)

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Income Tax Appellate Tribunal, “D” BENCH MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI GIRISH AGRAWAL

Hearing: 15.07.2025Pronounced: 16.09.2025

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, vide order no. ITBA/NFAC/S/250/2024-25/1072848834(1), dated 03.02.2025 passed against the assessment order by Assessing Officer, Circle- 5(3)(1), Mumbai, u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 16.12.2019 for Assessment Year 2017- 18. 2 Ravi K Sheth AY 2017-18

2.

Grounds taken by the assessee are reproduced as under:

“1) Both the lower authorities erred in computing "Income from House Property" in respect of Flat No.12B in building called "

The order continues below.

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