BHARAT DEWAKINANDAN AGARWAL,PUNE vs. ACIT, CIRCLE-13, PUNE., PUNE

ITA 884/PUN/2023Status: DisposedITAT Pune20 March 2024AY 2016-17Bench: SHRI OM PRAKASH KANT (Accountant Member), SHRI S.S. VISWANETHRA RAVI (Judicial Member)8 pages
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What did the Tribunal hold?

The Tribunal held that for vacant properties, the AO must determine the Annual Letting Value (ALV) under Section 23(1)(a) of the Income Tax Act, considering comparable properties if municipal valuation is not representative of fair rent. For other properties, where the AO's estimation lacked proper evidence, the matter was remanded.

What were the facts?

The assessee challenged the addition of deemed rent for house property. The Assessing Officer (AO) determined the Gross Annual Value (GAV) for office premises based on comparable properties, disregarding the municipal valuation provided by the assessee who claimed the property was vacant. The National Faceless Appeal Centre (NFAC) confirmed the AO's action.

What were the issues?

Whether the AO can disregard municipal valuation for vacant properties and determine ALV based on comparable properties? Whether estimation of rental value by AO without sufficient evidence is justified?

Which sections of the Income-tax Act were involved?

Section 23(1)(a),Section 23(1)(c)

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Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI OM PRAKASH KANT & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri V.L. Jain
For Respondent: Shri Ramnath P. Murkunde

PER S.S. VISWANETHRA RAVI, JM :

This appeal by the assessee against the order dated 27-07-2023 passed by the National Faceless Appeal Centre (“NFAC”), Delhi for assessment year 2016-17. 2. The sole ground raised by the assessee challenging the action of CIT(A) in confirming the addition of Rs.45,70,465/- made by the AO on account of deemed rent under the head income from house property in the facts and circumstances of the case.

2 ITA No.884/PUN/2023, A.Y. 2016-17

3.

The brief facts relating to the case are that, the ass

The order continues below.

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