Dismissing the appeal of the assessee the Court held that; where properties held as stock-in-trade were not let out for any previous years, there would be no question of availing vacancy allowance given in S. 23(1)(c) and assessee would be liable to pay tax on the sum for which the property might reasonably be expected to let from year to year under S. 23(1)(a) of the Act.(AY. 2005 -06,2006 -07 )
Ansal Housing & Construction Ltd. v. ACIT ( 2018) 89 Taxmann.com 238 ( Delhi) (HC) Editorial: SLP is granted to the assessee, Ansal Housing & Construction Ltd. v. ACIT (2018) 256 Taxman 294 (SC)
S. 23: Income from house property – Annual value -Vacancy allowance -Construction business- Some flats constructed by assessee were not let out during year -Properties held as stock-in-trade were not let out for any previous years, vacancy allowance is not available-Liable to pay tax on the sum for which the property might reasonably be expected to let from year to year under S. 23(1)(a) of the Act. [ S. 22,23(1)(a), 23(1)(c) ]