Santosh Mahadeo Dalvi Vs DCIT (ITAT Mumbai)
Online Notices Do Not Make Documents Instantly Available: ITAT Admits House Property Evidence Filed After Assessment
The ability to respond to an income-tax notice online does not necessarily mean that the documents needed for the response are readily available. That distinction persuaded the Mumbai Tribunal to admit additional evidence relating to two house properties, although the assessee had not furnished it during assessment. The Tribunal sent the issues back to the Assessing Officer for examination. It did not decide whether the assessee’s claims for nil annual value or housing-loan interest were ultimately allowable.
The house property dispute
Santosh Mahadeo Dalvi filed his return for assessment year 2020–21 declaring total income of ₹3,24,05,620. The case was selected for limited scrutiny concerning income from house property. During assessment, the Assessing Officer asked for loan sanction letters, interest certificates, purchase deeds, evidence of interior work, electricity bills and documents establishing when a property was occupied.
One dispute concerned a flat at Crescent Bay, Parel. The assessee stated that he obtained possession on 3 October 2019, after which interior work was undertaken. According to him, the flat was not ready for occupation during the remaining part of the year, and its annual value should therefore be taken at nil. The Assessing Officer found that documents supporting the interior work and the claimed vacancy had not been furnished. He determined the annual value of the flat at ₹5,40,000.
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