difficulty about SEc.23(1) (c)

In Sec.23(1)(c), it is provided out that in case the actual rent recieved (ARR)is less than the expected rent (ER) "owing to vacancy", then ARR shall be taken as annual value.
but i want to know if the ARR is already less than ER even if rent of vacancy period is included in the ARR, then what value is to be taken.
V.K. Singhnia points out that in the latter case, the ER should be taken but the loss due to vacancy shall be deducted from that amount.
for instance..............

ARR (6000x10) = 60000
ER = 75000

Rent of vacancy period (2 mnths) = 12000

even if Rs.12000 is added to ARR,
then also it comes out to be Rs.72000 which is in itself less than ER.

that means the vacancy period hasn't had any effect on the ER.
which value to be taken?
as per V.K. Singhania, the Annual value will be Rs.63000 [75000-12000(loss of vacancy)].
Sec.23(1) (c) doesn't provide for the deduction of any loss of vacancy..
kud u pls clear the above point....

Even circular no.14/2001 which is in this regard kud not be of help....

SIR,

I THINK ANNUAL VALUE WOULD BE Rs.75000 i.e expected rent. As 23(1)(c) is not applicable thus annual value will be determined u/s 23(1)(a).

its clearly mentioned in the law that ARR shall be taken less than ER only in case of vacancy, so as per law ur case does not fall U/S 23(1) (c).

Dear Vinod sir,

A query:-

If a person has let out his redidential property & he wants to use it for the same purpose in future also. Can he use it as  business asset?

Receiving rental incomes & expenses are set off against this income.Is it possible-show under head PGBP

OR

Rental income will still be shown under income from house property?

But since he is running business of giving property on rent, expenses incurred will result into loss & that loss can be set off against house property income? 

In the present case the GAV should not be less than ERR but it shall be allowed only if it is due to vacany. SO GAV shall be 63k (75 - 12 )

Dear Vinod Sir,

Problem : Suppose a assesse have a house property which is self occupied.In p.y. 31/03/2009 he has paid interest on loan Rs. 5,00,000/-. assesse can get deduction u/s 24(b)will be Rs. 1,50,000/- or Rs. 30,000/- as the case may be.he dosn't get benefit of Rs. 3,50,000/- which he has paid.Can assesse claim such interest?If he sale the property can he add unadjusted interest to the cost of property in calculating Capital Gain.

????????

Dear Vinod Sir,

Problem : Suppose an assesse is a joint owner of a house property. Can he himself claim all the interest on borrowed capital u/s 24 (b) w.r.t. to the said property if he shows all the rental income from such house property in his own account. Further the co-owner of such house property is assessee's mother.