Notional annual lettable value u/s 22 of the Income Tax Act, 1961

IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH
BENCH ‘B’ CHANDIGARH

BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM

ITA No. 239/CHD/2020

Assessment Year : 2016-17

The DCIT,
Circle 1(1),
Chandigarh.

VS

Shri Rajbir Singh Walia,
House No. 336, Sector-9,
Chandigarh

Revenue by : Shri Ashok Khanna, Addl. CIT

Assessee by : Shri S.K. Bhasin, CA

ORDER

The ld. Sr .DR inviting at tent ion to the impugned order submitted that instead of passing a final order , the ld. CIT(A) in violation of the statutory remit of Sec t ion 251 of the Income Tax Ac t , 1961 has remanded the is sue to the AO. Accordingly, it was hi s submission that the impugned order may be set aside. At tent ion was invited to para 5.2.3 of the order .

2. Referring to the Ground raised in the assessee' s appeal , it was hi s submiss ion that in the facts of the present case , the ld. Commisioner has erred in not al lowing necessary relief considering the correct facts .

3. The reply of the assessee has been considered but is not found acceptable as these documents do not prove that the house was not in a habitable condition in the relevant Financial Year. The ownership of the said house has kept on changing since then as per the records. Further, notice u/s 133(6) was issued to the Estate Officer, UT, Chandigarh to provide the annual rental value of the property. In this regard, the Estate Office, UT, Chandigarh, provided the annual rental value of the property at Rs.76,77,955/- for the year 2018 vide their Memo No.290376/SDO(B)/ RP-434/2018 dated 18.12.2018 which is placed on record. From their reply it was also noticed that a revised building plan was sanctioned by the Estate Office, UT, Chandigarh on 27.12.2017. The report gives a fair idea regarding the standard rent as per the cost of the land and property as the house existing in relevant F. Y. was also a double storey house hence the same can be used as fair standard rent for the property under consideration.

4. The Buyer of the said house has also demolished the old construction and built new house. The copy of sanction of revised building plan is being attached as per Annexure-lll for your ready reference which is also submitted to Ld. ACIT during the assessment proceedings.

5. In the result , appeal of the Revenue is al lowed and theappeal of the assessee is dismissed.
Order pronounced on 2nd September,2021.

Please find attached the enclosed file for the full judgement