Wednesday, 2 October 2013

NO NOTIONAL RENT ON HOUSE UNDER INTERIOR DECORATION


S.23: Income from house property-Notional rent-Property let out from April 2006-Income cannot  be estimated on notion basis for the year ending 31-03-2005.

 

Assessee received the possession of property in December 2005.Assessee took three months to complete the furniture work and the property was let out from April 2006. AO held that as the property was in possession of the assessee, the provisions of section 23(1) were attracted and annual value of the property was deemed to be the income of the assessee. Tribunal held that where on account of interior work being carried out during the year the property could only be leased out from the next financial year , no notional rent could be added as the income of the assessee in the current year.(ITA no 4032/Mum/2009 dt 25-05- 2012 Bench “F’).(A.Y. 2006-07)

Bhawanji Kunverji Haria v. DCIT (2013) BCAJ–September-P. 28(Mum.)(Trib.)

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