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
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