Case Law Details
Amit Balkrishna Jalan Vs ACIT (ITAT Mumbai)
Another issue raised relates to confirmation of annual letting value of yashodeep flat at a municipal ratable value, when there was material filed to demonstrate that the flat was not fit for occupation and certificates from authorities were filed for evidence of the same.
On this issue, the assessee’s plea that the said flat was not habitable and was in a ruinous condition was very much before the Ld.CIT(A). Ld.CIT(A) noted the plea that when the concerned house property was not in a position to be let out there cannot be any deemed notional rent for the same. For this proposition, he noted the reference by the assessee to several ITAT decisions. However, Ld.CIT(A) chose to display scant regard for judicial discipline. He did not at all refer whatsoever to the ratio emanating from the ITAT decisions. But, simply referred to the provision of the concerned section and Hon’ble Bombay High Court decision in case of Tiptop typography. He did not refer at all as to how the Hon’ble Bombay High Court decision empowers him to impose notional rent on a flat, which is inhabitable and in a ruinous condition.
It is amply clear that the order of Ld.CIT(A) is without any application of mind. There is no discussion whatsoever as to where the act mandates that if a flat is inhabitable and in a ruinous condition notional rent should be computed thereon and imposed upon the assessee. The ITAT decisions referred by the assessee despite being noted has been ignored by the CIT(A). For all the above reasoning including the lack of application of mind by the CIT(A) and the scant regard to the judicial discipline the order of Ld.CIT(A) is set aside and the notional rent addition in this regard is directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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