ITAT : Grants vacancy allowance; Saif Ali Khan's ‘construction defect’ plea not spurious

Mumbai ITAT grants vacancy allowance u/s 23(1)(c)  to Saif Ali Khan Pataudi (‘assessee’)  in respect of his Bandra flats that could not be let out during AY 2012-13;  Notes that assessee had offered Rs.11.83 lakh  as taxable rent, however, Revenue had substituted a sum of Rs. 50 lakh as reasonable rent for the property, accepts assessee’s plea that due to inherent defects/unauthorised construction, the flat could not be let out; Holds that assessee’s plea “cannot be said to be spurious, vexatious, mere bluster or frivolous.”, furthermore, noting that assessee had to incur Rs. 50 lakhs in order to make necessary alterations to remove defects, ITAT remarks that “This oxygenates the assessee's claim that the premises required alteration in order to properly let out.” ; Referring to Sec. 23(1)(c), ITAT opines that “in case the property or part thereof was vacant during the period, the proportion deduction should be allowed from the sum on which the property might reasonably be let out from year to year.”; In light of aforesaid facts, ITAT holds that assessee deserves vacancy allowance, relies on co-ordinate bench ruling in Premsudha Exports (P) Ltd.:ITAT