Vacancy Allowance under the Income Tax Act, 1961

IN THE INCOME TAX APPELLATE TRIBUNAL
 DELHI BENCH ‘F’, NEW DELHI

BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER
AND
SH. MAHAVIR PRASAD, JUDICIAL MEMBER
 (THROUGH VIDEO CONFERENCING)

ITA No.4739/Del/2017
 Assessment Year: 2013-14

Love Kumar Khosla
Khosla Farm, Sultanpur,
Mahrauli Gurgaon Road,
Delhi
PAN No.AAAPK9263H

Vs

JCIT
Range-72
Delhi
 (RESPONDENT)

Appellant by Sh. Pradeep Agarwal,CA
Respondent by Sh. Gourav Pundir, Sr. DR

Date of hearing: 13/07/2021
Date of Pronouncement: 13/07/2021

 ORDER

PER N. K. BILLAIYA, AM:

 This appeal by the assessee is preferred against the order of the CIT(A)-21, New Delhi dated 26.04.2017 pertaining to A.Y. 2013-14. 

2. The revised grounds of appeal are as under :- 

3. Before us, at the very outset, the counsel stated that he would be pressing only ground No.5 with its sub ground 5.1.

4. On such concession all other grounds are dismissed as not pressed.

5. The underlying facts in the surviving ground are that during the course of scrutiny assessment proceedings the AO noticed that assessee has shown income from house property from renting out of property at DLF city, Gurgaon and has declared  annual rental value u/s.23 of the Act at Rs.34,18,726/- and claimed deduction @ 30% u/s.24 (a) of the Act amounting to Rs. 10,25,618/-.

6. Assessee was asked to furnish the rental details. The details were furnished and it was explained that during the year under consideration the assessee had let out this property on a monthly rental of Rs.4.30 lacs which was to be increased by 5% from 06.08.2012. It was further explained that the tenant vacated the property in October, 2012 and the property remained vacant till 04.03.2013 and thereafter the premises was let out on a monthly rent of Rs. 4,00,000/-.

7. The AO was of the firm belief that if the property had been occupied by the tenants from the entire year the assessee would have received Rs.52,84,926/- and this should be the ALV of the property. The AO took the ALV of Rs.53,32,000/- being monthly rent of Rs.451500/- and after allowing deduction u/s. 24(a) of the IT Act @ 30% made the addition of Rs.13,39,296/-.

8. Assessee carried the matter before the CIT(A) but without any success. 

To know more in details find the attachment file