1985 (7) TMI 157

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....er to the assessee by the said builder. The sale deed in respect of the said flat has, however, not been executed yet. The assessee declared the market value of the said flat in his hand at Rs. 1,90,000, vide his first return, as per the valuation report of an approved valuer. Thereafter he revised the return and declared the value at Rs. 1,53,645, which was the cost of the assessee's flat. As per the assessee the revision was done in terms of the decision in the case of Dewan Daulat Rai Kapoor v. NDMC [1980] 122 ITR 700 (SC) though it was not explained as to how the value would be above as per ratio of the abovementioned decision. 2. The WTO valued the said flat at Rs. 4,29,960 on the basis of yield method, taking the actual yield from ....

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....rent contrasted for is not the standard rent. 5. On behalf of the revenue, it is urged that the valuation worked out by the WTO was justified as it was in accordance with rule 1BB. 6. We have given careful consideration to the facts of the case and the rival submissions. The assessee has had no evidence whatsoever to show that the contracted rent is not the standard rent or that it is not maintainable in the long run and that it has not been contracted for in the normal course between a willing hirer and willing landlord. As such, there is no material before us to hold that the assessee is getting rent from his flat in excess of the standard rent or that this rent is not maintainable in future. The actual rent received by the assessee....

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....is maintainable in future the market value by the yield method will have to be worked out in our opinion, on the basis of the actual rent being realized by the assessee unless it can be shown that was not the maintainable rent. The WTO, was, therefore, correct in working out the value of the property on the basis of actual rent received by the assessee, and as we have noted above, in the absence of any material on record, it is not possible for us to hold that such rent is not the maintainable rent or that the rent is abnormal or in excess of the authority of law. The onus to prove this was on the assessee and he has failed to discharge this onus. The actual rent being realised by the assessee is not in dispute and, therefore, the working o....