2009 (11) TMI 348

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....co-owners of the property known as MVJ Towers, situated at No. 177/1, Poonamalle High Road, Kilpauk, Madras. It consists of basement, ground, first, second, third and mezzanine floor including lobby and parking facility in the ground floor. The total plinth of the building is about 40.112 sq. ft. Out of this 19,275 sq. ft. has been let out in the mezzanine floor, ground, second and third floors along with the parking space in favour of State Bank of India along with other co-owners on monthly rent of Rs. 2,36,000 out of which Rs. 2,06,500 towards building rental and Rs. 29,500 towards amenities. The assessee filed his return and the same was processed under section 143(1)(a) of the Act. The assessee in his return declared the ¼ th sh....

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....(i) Whether the Tribunal was correct in holding that the notional value of the property held by the assessee in respect of the unlet portion should be computed on the municipal valuation at Rs. 2.25 per sq. ft. as against Rs. 12 per sq. ft. adopted by the Assessing Officer based on the actual rent received by the assessee in respect of the other portion of the property? (ii) Whether the Tribunal was correct in holding that the assessee would be entitled to vacancy allowance under section 24(1)(ix) of the Act despite the assessee having not let out the entire vacant portion of the building during the entire year? 5. We have heard the learned counsel for the parties. 6. Mr. Aravind, learned counsel for the Revenue contends in view of....

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....d and let out by the assessee and he further contends just for the bank for its purpose the bank has taken at Rs. 12.5 per sq. ft. and the same cannot be the rental value as contended by the Revenue. He further contends that adjoining to the present building corporation has let out the basement building at the rate of Rs. 3 per sq. ft. Therefore the Tribunal was justified in accepting the contention of the assessee that the standard rent cannot be more than Rs. 2.25 per sq. ft. in respect of the vacant portion of the building. In the circumstances, he requests the court to dismiss the appeal. 8. Having heard the counsel for the parties we have to consider what would be the annual letting value of the building when it is not let out to a ....