Income From House Property

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Chirag B Shah (Querist)

11 December 2007 I own 2 House Property one of the Property is a residential Property where i am actually resides and another one is a commercial property which is neither been used for my own business or proffession nor it has been let out to others and therefore it remains vaccan for several years now the question is that whether the Assessing Officer can treat a commercial property as a " deemed to be let out " u/s.23(4)because Sec 23(4) talks about if the assesse owns more than one residential property.

Manish Agarwal

Manish Agarwal (Expert)

12 December 2007 U/s 22 of the Act what is chargeable is the annual value of House Property irrespective of the fact that it is a residential property or commercial property. So the commercial property will have to be assessed at Annual Value (being higher of Fair Rent and Municipal Value)under the head IFHP. However the Annual value can be taken as Nil u/s 23(1)(c) only if the property has been held with the intention to let it out subsequently and it is lying vacant because the assessee has not been able to get a tenant.There is no question of application of Sec.23(4) since the same applies to only residential hp and not commercial house property.

Chirag B Shah

Chirag B Shah (Querist)

14 December 2007 Is there any case law because the A.O is not trying to understand as the same thing i have put before him.

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