16 December 2011
An assesse has constructed a commercial building in middle of the year. The building has 100 shops to be ready for letting out. The building construction was completed in October 2010. The property hasnt been taken by anybody until the end of the said finanicl year.The assesse has filed Income Tax return without showing any Income under the Head Income from House Property. But on assessment assessing officer assessed his Income taking the notional rent for the vacant period. That is for the period from October 2010 to March 2011. Did the assessing officer righly aseess his Income?
16 December 2011
Technically, the assessee is supposed to show Income from House Property by showing Annual Letable Value/ Rent Received Receivable in Item a of Schedule HP in respect of all his shops. (Even Zero income has to be shown for compliance)
In case assessee has not shown any IFHP, AO's action can not be said to be illogical or incorrect.
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