2004 (3) TMI 705

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....ty was owned by the assessee and let out at monthly rent of Rs. 4,200 as per the lease deed dated 8-11-1980. On the basis of this lease deed the assessee had been showing the annual letting value of Rs. 54,000 year after year. For these two years also the assessee had declared ALV at Rs. 54,000. However, in the course of assessment proceedings it was noticed by the Assessing Officer that Municipal Authorities had determined the rateable value at Rs. 2,43,242 w.e.f. 1-4-1986. The assessee was asked to show cause as to why the ALV should not be taken at Rs. 2,43,242. In response to the same it was stated by the assessee vide letter dated 28-1-1994 that certain alterations in a small portion of the building were carried out by the lessee compa....

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.... conditions of the lease deed the assessee could not have any benefit on account of alterations made by the lessee and the rental income earned by the tenant. No doubt the Municipal Authorities could take into consideration while determining the rateable value but as far as the lessor is concerned, it was not entitled to seek any rent more than what was agreed upon between the parties. The property was being subject to Rent Control Legislation and, therefore, the landlord could not enhance the rent. There is no allegation by the revenue that the sum of Rs. 54,000 was not the reasonable rent at the time when the factory premises was let out in 1980. Therefore, there was no material on record to hold that the lease agreement was not genuine. ....

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....rected to adopt the annual letting value at Rs. 50,400 per annum. 4. The next issue arising from the departmental appeal for assessment year 1991-92 relates to disallowance of capital loss of Rs. 1,00,640 on sale of shares. The assessee had sold 200 shares at a consideration of Rs. 2 lakhs which is not in dispute. However, the cost of acquisition of these shares was taken at Rs. 4,51,600 being the fair market value as on 1-4-1974 since such shares were acquired before that date. In support of the same the assessee furnished balance-sheet of the company in which the shares were held by the assessee. The Assessing Officer was not satisfied with such explanation of the assessee. It was noticed by him that certain bonus shares had been issue....