Tax on rental income of vacant flat was limited to Municipal Value

Ravi K Sheth Vs DCIT (ITAT Mumbai) Conclusion: Where the property was not actually let out, and was treated as self-occupied property, in case of vacant property, the annual value under section 23(1)(a) must be determined on the basis of the Municipal Rateable Value and not market rent. Held: Assessee owned two flats — Flat No. 12B and Flat No. 14B — in the building “Manek,” Mumbai. Flat No. 12B, self-occupied for over 20 years, was gifted to his son on 30.01.2017. During scrutiny assessment, AO noted that assessee had not offered deemed rental income for Flat No. 12B for the period 01...