DCIT Vs M/s. Turner Morrison Limited, (ITAT Kolkata)
The addition of Rs.80,39,178/- on account of deemed rental income from the building at Qutub Institutional area as made by the Assessing Officer was challenged by the assessee in the appeal filed before the ld. CIT(Appeals) and after considering the submissions made by the assessee as well as the material available on record, the ld. CIT(Appeals) deleted the same for the following reasons given in paragraph no. 21 of his impugned order:-
“21. I have carefully considered the observations of the Assessing Officer in the assessment order, and submissions of the appellant. The appellant has produced a copy of the Writ Petition filed in the Hon ‘ble Delhi High Court relating to sealing of the property in which it is clear that the building was sealed on 14/11/2006 in the sealing drive undertaken by Municipal Corporation of Delhi. Therefore, the appellant was prevented by sufficient cause not to let out this property. Therefore, the Notional Income from the said property lying vacant due to Act of Government cannot be added back. Hence, addition of Rs.80,39,178/- is deleted”.
We have heard the arguments of both the sides on this issue and also perused the relevant material available on record. The ld. D.R. has contended that the relief on this issue was allowed by the ld. CIT(Appeals) by relying on the copy of Writ Petition filed by the assessee for the first time before him, wherein the date of sealing of the property by Delhi Municipal Corporation was mentioned at 14.11.2006 as against the date of 14.11.2011 taken by the Assessing Officer. He has contended that the ld. CIT(Appeals), however, did not give any opportunity to the Assessing Officer to verify this additional evidence in the form of copy of Writ Petition filed by the assessee before giving relief to the assessee on this issue and there is thus a violation of Rule 46A of Income Tax Rules by the ld. CIT(Appeals). The ld. Counsel for the assessee, on the other hand, has submitted that the date of sealing of the property being 14.11.2006 was specifically pointed out by the assessee before the Assessing Officer but the same was wrongly taken by him on 14.11.2011. He has contended that he, however, has no objection if the matter is sent back to the Assessing Officer for verification of the date of sealing of the property. Accordingly, we set aside the impugned order of the ld. CIT(Appeals) on this issue and restore the matter to the file of the Assessing Officer for deciding the same afresh after verifying the exact date of sealing of the property by Delhi Municipal Corporation from the relevant documentary evidence.
