Tax on rental income of vacant flat was limited to Municipal Value

Ravi K Sheth Vs DCIT (ITAT Mumbai)

Conclusion: Where the property was not actually let out, and was treated as self-occupied property, in case of vacant property, the annual value under section 23(1)(a) must be determined on the basis of the Municipal Rateable Value and not market rent.

Held: Assessee owned two flats — Flat No. 12B and Flat No. 14B — in the building “Manek,” Mumbai. Flat No. 12B, self-occupied for over 20 years, was gifted to his son on 30.01.2017. During scrutiny assessment, AO noted that assessee had not offered de

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