Tribunal rules in favor of assessee on ALV computation, citing precedent and lack of incriminating evidence

The Tribunal dismissed the Revenue's appeal and allowed the assessee's appeal regarding the computation of ALV of a property. The Tribunal upheld the use of municipal rateable value as the basis for ALV, citing previous decisions and the binding nature of the jurisdictional High Court judgment in the assessee's case. The Tribunal emphasized consistency with earlier rulings and the absence of incriminating evidence against the assessee's position.

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Issues:
1. Whether notional interest on interest-free deposits should be considered for computing the ALV of a property.
2. Whether the ALV should be based on the municipal rateable value of the property.

Analysis:

Issue 1:
The Revenue raised the issue of considering notional interest on interest-free deposits for computing the ALV of a property under section 23 of the Act. The Tribunal referred to previous orders in the assessee's case for AYs 2006-2007 and 2008-2009. The Tribunal had directed the AO to accept the income from house property based on the municipal rateable value. The Tribunal relied on the judgment in the case of CIT vs. Tip Top Typography [2014] 48 taxmann.com 191 (Bombay) to support the assessee's position. The Tribunal dismissed the Revenue's appeal and allowed the assessee's appeal, citing the binding nature of the jurisdictional High Court judgment in the assessee's case.

Issue 2:
The assessee's appeal related to the computation of ALV based on the municipal rateable value of the property. The Tribunal noted that the issue had been previously decided in favor of the assessee in the AY 2006-2007 and 2008-2009. The Tribunal reiterated its decision to accept the municipal rateable value as the ALV of the property, following the judicial pronouncements. The Tribunal dismissed the Revenue's appeal and allowed the assessee's appeal based on the previous judgments and the lack of incriminating material against the assessee's claim.

In conclusion, the Tribunal dismissed the Revenue's appeal and allowed the assessee's appeal, maintaining consistency with previous decisions and the binding nature of the jurisdictional High Court judgment in the assessee's case.

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