Where the assessee has not received rental income for the previous assessment year and any Security/ Rental deposit available is to be adjusted first for old outstanding and if there is any amount remaining unadjusted, the extra rental advance will be adjusted in the current assessment year outstanding. It is undisputed that the rental advance was adjusted for previous assessment year dues and nothing was available for outstanding rent of current assessment year. No addition can be made. (AY. 2012-13)
Vishwaroop Infotech Pvt. Ltd. (Now Merged with M/s. Wadhwa group Holgings Pvt. Ltd.) v. ACIT (2020) 195 DTR 393 (Mum.)(Trib.)
S. 23 : Income from house property-Annual value-No rental income-Security deposits to be adjusted for old outstanding-If amount excess remains then current assessment year outstanding to be adjusted. [S. 22]