1981 (1) TMI 139

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....e four assessment years. under appeal. The value declared by the assessee was supported by an approved valuer's report. It is common ground that the house property aforesaid is wholly let out to tenants and is subject to the Delhi Rent Control Act, 1958. The gross annual rent received by the assessee was Rs. 2697. After allowing admissible deductions on account of property tax, repairs, collection charges, etc. The net annual letting value was determined at Rs. 2,023. The assessee's valuer applied a multiple of 12 and determined market value by rent capitalisation method at Rs. 25,138. He added reversionary value of Rs. 12,610 and value of the Unutilised potential of land measuring 400 sq. yds. at Rs. 26, 203. In this manner, the total mark....

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....rsionary value and the only appropriate method in this case was to determine the value by rent capitalisation method. In support of this submission, reliance was placed on the following decisions of the various High Courts: CIT West Bengal vs. Smt. Ashima Sinha (Cal.) (1979) 116 ITR 26 (Cal) Subhkaran Chowdhury vs. IAC of Income-tax (Cal) (1979) 118 ITR 777 (Cal), CIT vs. M.S. Gujral (P&H) (1980) 125 ITR 655 (P&H) CIT vs. New India Construction Co. (1980) 17 CTR (Del) 223 : (1980) 123 ITR 68 (Del). He further submitted that the net annual letting value of the property was accepted even by the Department Valuer at Rs. 2,328.54 P. The dispute, it was submitted, was only in regard to the multiple to be applied to the said net annual letting....

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....ng 400 sq. yds. at Rs. 26,203. We are of the view that the assessee should succeed on its contentions. We enquired in the course of hearing and were informed that the property including the land is wholly let out and is in the possession of the tenants for the last about 25 years. The so-called unutilised portion of land forms part of the tenanted premises. In other words, the land in question is appurtenant to the tenanted house property and forms part and parcel of the leased portions of the property. The entire tenanted property is subject to the Delhi Rent Control Act, 1958 and neither the rent can be enhanced and nor can the tenants be evicted from this property except in accordance with the provisions of the Rent Control Act. In this ....