Case Law Details
Shri Basant Kumar Nahata Vs ACIT (ITAT Kolkata)
It is noted that a house property was inherited by the assessee in his native village situated at Rajasthan which was duly shown in his Balance Sheet. Since the assessee has residential house at Kolkata, the AO invoked sec. 22 and 23 of the Act, estimated the annual letable value at Rs. 1,20,000/-, i.e. Rs.10,000/- per month. It was brought to our notice that the house in question is an old house, which is in a dilapidated condition and so it is not habitable. Therefore, according to Ld AR, the question of letting out of the property does not arise. It was also brought to our notice that no inquiry was carried out by the AO before estimating the annual letable value of the house despite the assessee pointed out this fact to the AO that the house in question is an old house, which is in a dilapidated condition and so it is not habitable and therefore, the question of letting out of the property does not arise. Taking in to consideration the aforesaid facts, in the interest of justice and fair play, I set aside the order of Ld. CIT(A) and restore the matter to the file of AO to verify the contention of the assessee that the house in question is in a dilapidated condition and not habitable. The AO after making enquiries finds the contention of the assessee to be correct then no deemed provision of sec. 22 read with section 23 should be saddled on the assessee. If the contention of the assessee fails and the house is habitable then the AO to make reasonable annual letting value considering the location and rent which the house could fetch in that locality in accordance to law after hearing the assessee. Therefore, this ground of appeal of assessee is allowed for statistical purpose.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by assessee is against the order of Ld. CIT(A) – 13, Kolkata dated 04.09.2018 for AY 2013-14.
2. The first ground of appeal of assessee is against the action of Ld. CIT(A) in upholding the disallowance of Rs.1,37,387/- u/s. 14A r.w.r. 8D(2) of the Rules.
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