Case Number: ITA 5377/DEL/2019
Appellant: DCIT Circle-13, New Delhi
Respondent: JAH Developers Pvt Ltd, New Delhi
Assessment Year: 2015-16
Case Filed On: 2019-06-13
Order Type: Final Tribunal Order
Date of Order: 2023-09-06
Pronounced On: 2023-09-06
The Income Tax Appellate Tribunal, Delhi Bench, heard the case ITA 5377/DEL/2019 filed by the DCIT Circle-13, New Delhi, against JAH Developers Pvt Ltd, New Delhi. The case revolved around the dispute over the rental income for the assessment year 2015-16.
The appellant, DCIT Circle-13, New Delhi, challenged the order of CIT(A)-5, New Delhi, dated 28.03.2019. The primary issue was the disallowance of Rs. 1,92,60,000/- made by the Assessing Officer (AO) on account of composite rental income, which the CIT(A) had deleted.
The grounds raised by the Revenue for AY 2015-16 were as follows:
The Senior DR argued that during the assessment proceedings, it was found that the assessee, JAH Developers Pvt Ltd, had not declared any income from leasing out the property, a hotel named Jaisal Villa, which was leased to M/s. SRM Heritage Jaisalmer at a monthly rent of Rs. 15 lakh. The AO inferred that the assessee had received a composite rental income of Rs. 1,92,60,000/- which was not declared in the income computation, treating it as undisclosed income.
The respondent’s representative submitted that no rental income was received due to a dispute with the tenant, which led to litigation. The CIT(A) deleted the addition after considering the explanation and documentary evidence that supported the non-receipt of the rental income.
The Tribunal noted that the facts and circumstances for AY 2015-16 were similar to those for AY 2016-17. The CIT(A) had deleted the addition for AY 2015-16 on the grounds that the rental income was not received and was under dispute. The Tribunal found no reason to interfere with the CIT(A)’s findings, which were based on substantial evidence, including court orders confirming the non-receipt of the rental income.
The Tribunal upheld the CIT(A)’s decision to delete the addition of Rs. 1,92,60,000/- on account of notional rental income for both AY 2015-16 and AY 2016-17. The appeals filed by the Revenue were dismissed as the Tribunal found no merit in the grounds raised by the Revenue.
The order was pronounced in the open court on 06.09.2023.
-Sd/- (DR. B.R.R. KUMAR) ACCOUNTANT MEMBER -Sd/- (CHANDRA MOHAN GARG) JUDICIAL MEMBER
Dated: 06th September, 2023.
Copy forwarded to:
Asstt. Registrar, ITAT, New Delhi
DCIT Circle-13 vs. JAH Developers Pvt Ltd: Appeal on Rental Income Dispute
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