Case Law Details
Bipin Sureshchandra Mehta Vs ACIT (ITAT Mumbai)
The issue under consideration is whether the assessee having two properties has right to choose Self occupied and deemed let out property for the purpose of taxation?
In the present case, the assessee has two properties during the year, one at Mumbai and 2nd at Lonavala. The assessee did not file any details of these properties during the assessment proceedings and AO assessed the deemed rent on the basis of value of property shown in the balance sheet by applying 8% on the cost. During the assessment proceedings, the Ld. A.R. submitted before the Bench that the property at Mumbai may kindly be taken as deemed let out and house at Lonavala may please be taken as self occupied. but AO has rejected this request and passed the order.
ITAT states that the assessee is well within his rights to choose one of the two properties as self occupied and offered the property as deemed let out at his option. Therefore, we are treating the house at Mumbai as deemed let out and house at Lonavala as self occupied. Accordingly, ITAT set aside the order of Ld. CIT(A) and direct the AO to assess the deemed rent on the same basis as has been done in the assessment year 2012-13. Accordingly, the appeal of the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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