Section 22, 23, 24 of Income Tax Act, 1961— The Ground No. 1 of the assessee is regarding addition made by the AO on account of determination of fair retable value u/s 23 (1)(a) of the Act.

Held that— The AO has not considered the state of the building in question whether it is a bare structure without having all the basic amenities/ facilities and compared the same with another property which was let out on rent. Therefore, once the property in question is shown by the assessee as part of its fixed assets and it was used only for the stay of the security guard and driver of the assessee without charging any rent then said property cannot be assessed to income tax u/s 22 of the Act. The assessee has claimed the said property as business assets and used for business purposes of the assessee. Accordingly, in these facts and circumstances of the case, the addition made by the AO on account of income from house is not justified and the same is deleted.

The Ground No. 2 of the assessee is regarding disallowance of repairs and maintenance expenses of Rs. 32,717/-.

Held that—AO determined the annual rental value and allowed deduction u/s 24 of the Act, however the said addition made by the AO to the income from house property is deleted and consequently the repairs and maintenance expenses to the extent of said property shall be capitalized as assessee has claimed that construction was not completed during the year under consideration. Accordingly, I do not find any reason to interfere with the order of the authorities below in disallowing the said of expenditure on account repairs and maintenance. Thus Ground No. 2 of the assessee is dismissed.[M/S. PRAMOD BANSAL ENTERPRISES (P) LTD. VERSUS THE ACIT CIRCLE-1 KOTA] [2019] 18 ITCD Online (16) [ITAT JAIPUR]