Meena Rani Arora,201, Vipps Centre, 2-Community Centre, Masjid Moth, GK-II, New Delhi. Vs. ACIT, Central Circle-22, New Delhi.
October, 16th 2014
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES : E : NEW DELHI
BEFORE SHRI R.S. SYAL, AM AND SHRI RAJPAL YADAV, JM
Assessment Year : 2008-09
Meena Rani Arora, Vs. ACIT,
201, Vipps Centre, Central Circle-22,
2-Community Centre, New Delhi.
Masjid Moth, GK-II,
PAN : AAKPA2806N
Assessee By : Shri Sanat Kapoor, Advocate
Department By : Shri Gunjan Prashad, CIT, DR
PER R.S. SYAL, AM:
This appeal by the assessee is directed against the order
passed by the CIT (A) on 19.11.2012 in relation to the assessment
2. The only issue raised through various grounds is against the
estimation of annual letting value (ALV) of the Shimla property at
3. Briefly stated, the facts of the case are that the assessee
had two house properties, one situated at Delhi and the other at
Shimla in the previous year relevant to the assessment year
under consideration. The Assessing Officer called upon the
assessee to furnish details of their location and usage, which the
assessee did not. As the assessee had not offered any income
from house property, the AO required the assessee to explain as
to why annual letting value (ALV) of one of these two properties
be not assessed on notional basis. In the absence of any reply
given by the assessee, the AO estimated ALV of the property at
Shimla at `1,80,000/-. After allowing statutory deduction u/s 24
@30%, he computed `Income from house property' at `1,26,000/-.
No relief was allowed in the first appeal.
4. After considering the rival submissions and perusing the
relevant material on record, it is observed that the assessee
unsuccessfully tried to build a case before us about the Shimla
property being not in inhabitable state requiring no determination
of ALV. No evidence worth the name has been placed on record
in support of such contention. It is seen from the submissions
made before the ld. CIT(A) that the assessee, apart from making
the above submission, also contended that the ALV should be
estimated at a lower rate. This belies the claim of non-habitable
condition of the Shimla property. However, it is discernible from
the assessment order, that the AO estimated the ALV of this
property at `1,80,000/- without any basis whatsoever. The ld. AR
undertook to extend full cooperation to the AO if the matter of
computation of the ALV of such property was restored for fresh
adjudication. Under such circumstances, we are of the considered
opinion that the ends of justice would meet adequately if the
impugned order on this issue is set aside and the matter is
restored to the file of AO. We order accordingly and direct the AO
to determine the ALV of Shimla property as per law, after allowing
a reasonable opportunity of being heard to the assessee.
5. In the result, the appeal is allowed for statistical purposes.
The order pronounced in the open court on 14.10.2014.
[RAJPAL YADAV] [R.S. SYAL]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated, 14th October, 2014.
Copy forwarded to:
4. CIT (A)
5. DR, ITAT
AR, ITAT, NEW DELHI.