Actual Rent< Expected Rent, Vacancy Exists

When the expected rent is less than the actual rent we take actual rent as GAV

When the actual rent is less than expected rent  DUE TO vacancy  we take actual rent as GAV

When actual rent is less than expected rent DUE TO factors other than vacancy, we usually take expected rent as GAV

BUT,

Suppose actual rent is less than expected rent AND the property is vacant for some months,

EG: In other words Exp Rent=150  Annual Rent=120 Vacancy=2mts therefore actual rent=100

Will the expected rent be the GAV=150?

OR

Will the loss of vacancy be deducted from expected rent to calculate GAV (150-20=130)

Though most of our books give the 2nd option, the Income Tax Law(the actual text of the Law) gives an impression that the 1st option is right. The text of income tax does not say anything about such vacancy.

I heard from a friend that some CBDT Notif was there due to which the 2nd option is right. PLease let me know and increase your knowledge also