Addition of notional rental income unsustainable when property let out earlier was vacant whole year

Asfa Technologies & BPO Pvt. Ltd. Vs ITO (ITAT Chennai)

Held that provisions of section 23(1)(c) are applicable when the property was let out for two or more years, however, was vacant for the whole previous year. Accordingly, income tax on rental income on a notional base doesn’t apply.

Facts-

The assessee’s source of income is rental receipts. Assessee filed its ROI for AY 2013-14 admitting loss of Rs. 74,61,184/- under the head ‘income from house proper

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