Mack Star Marketing Private Limited Vs National Faceless Appeal Centre Delhi (ITAT Mumbai)
While scrutinizing the return of income and the details of the immovable property as on 31.03.2012 the Assessing Officer noticed that out of total 45 units of the project, 8 units were sold as on 31.03.2012 26 units are vacant and 11 units are given on leave and licence. The Assessing Officer found that the assessee has not offered any rental income in respect of 26 vacant units. Since the commercial project Kaledonia has been completed during the year under consideration and the assessee has in fact earned lease rental of ₹.8,98,83,457/- invoking provisions of section 23(4) of the Act. The Assessing Officer went on to determine the deemed rent in respect of vacant units in Kaledonia Project and made addition of ₹.26,98,74,180/-.
After giving thoughtful consideration to the findings of the Assessing Officer we find that the Assessing Officer has drawn support from the decision of the Hon’ble Delhi High Court in the case of CIT Ansal Housing finance & leasing Co. Ltd., [(2013) 29 taxmann.com 303] whereas while confirming the assessment the Ld. CIT(A) drew support from specific provision inserted by the Finance Act, 2017 in section 23(5) of the Act.
