Assessee and two other co-owners executed a registered lease deed on 1-2-2016.  As per lease deed, possession of leased premises was given to lessee on 1-6-2016 and lease rentals were to be paid from date of handing over building to lessee.  Assessing Officer held that rental income of property commenced on 1-2-2016 itself but same had not been offered to tax, and therefore, same was added back to returned income of assessee. Commissioner (Appeals) enhanced addition made by Assessing Officer by working out income from house property on basis of Annual Letting Value (ALV) under section 23(1)(a)  of the Act. Held that for period between 1-2-2016 and 1-6-2016 assessee was making demised property operational and further, lease rental received by assessee from 1-6-2016 was disclosed under head ‘Income from house property’ for subsequent assessment year 2017-18 onwards and lease rental received for relevant assessment year was nil.Since the  property was actually let out during relevant financial year, section 23(1)(c) would be applicable instead of section 23(1)(a) and addition made by Commissioner (Appeals) on basis of Annual Letting Value (ALV) was to be deleted. (AY. 2016-17)