Assessee has let out the property from assessment years 2008-09 to 2011-12, however, same was vacant due to non-availability of tenants. The AO computed the annual value of property under section 23(1)(a) of the Act. Held that if property is let out for two or more years and was vacant for whole or any part of previous year, then said property provision of section 23(1)(c) would be applicable. AO was directed to delete the addition. (AY. 2013-14)
Asfa Technologies & BPO (P.) Ltd. v. ITO (2022) 197 ITD 323 (Chennai)(Trib.)
S. 23 : Income from house property-Annual value-Vacancy allowance-Property vacant for whole or any part of previous year-Vacancy allowance is allowable. [S. 22, 23(1)(c)]