TaxTMI 
TaxTMI 
2014 (6) TMI 104
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....d in confirming the order of the ITO for the addition to the extent of Rs. 5,59,000/- applying the notional annual value of the residential property instead of considering the Municipal Retable Value available for the residential property deemed to be let out u/s. 23(4) r.w.s. 23(1) of the Act. (2) On the facts and in the circumstances of the case and in law, both the lower authorities erred in adopting the notional and imaginary annual value for the residential property "deemed to be let out" purely on assumptions, presumptions and pure guess work, ignoring the explanations duly substantiated by the evidences furnished to establish the existence of Municipal Retable Value for the residential property and hence, the action of bot the low....
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....has exercised an option under Clause (a), shall be determined under sub-section (1) as if such house or houses had been let out. The A.O. gave reasonable opportunity of being heard on this issue, which was responded by the assessee vide letter dated 12.11.2009 & 02.12.2009. After considering the assessee's reply, the ld. A.O. assessed the notional income from both the properties, by considering following factors: i. Property no.1 & 2 are located in most posh area of Mumbai i.e. Malabar Hills and prevailing rate of rent on 2 bed room and a kitchen is ranging between Rs.50,000/- to Rs. 1,50,000/- per month. ii. Mumbai is considered to be a mega city and the business capital of the country and whose rental value is second highest in Indi....
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....s case on the protective basis. The assessee's submission before the ld. CIT(A) was that the premises are subject to Maharashtra Rent Control Act and they had not been let out, the notional rent cannot exceed the standard rent, which has to be worked out at 10% of the cost of these two flats. As per Section 22 of the IT Act, provides that annual value of the property shall be chargeable to income Tax Act under the head "Income from House Property". Section 23(1)(a) provides that for the purpose of Section 22, the annual value of the property shall be deemed to be the sum for which the property might reasonably be expected to let from year to year. Further, Section 23(2) provides that where a property is self occupied, the annual value of th....
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....m the mother-in-law in the year 1997. The ld. A.R. contended tht in such cases Section 49(1)(ii) & Section 55(2)(b)(ii) are applicable. Ld. A.R. submitted a Valuation Report from the Registered Valuer showing market value at Rs.10,25,795/-. The market value of the flat on the date of gift (1997) cannot be considered for determining the ALV because the donor or the appellant had not purchased that flat on that date. With regards to the flat no.4 at Rekha Apartment, the ld. A.R. stated before the CIT(A) that the flat was purchased in the year 1992 for a consideration of Rs.9,00,000/- and therefore, 10% of that value should be considered for determining the ALV. The Housing Society also charges, which had not been added in the cost of the flat....
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....income by all the coowners, which has rightly been accepted by the Department in the past while framing the assessment u/s.143(3) of the IT Act. In support of this, a copy of regular assessment order u/s. 143(3) of the Act for the assessment year 06-07 passed by the same ITO, Ward 2, Navsari on 12.11.2008 along with the statement of computation of income in the case of one of the co-owners, namely, Shri Gautambhai K. Desai (the appellant's husband) have been attached at page nos. 67 to 76 of paper book. In spite of that the ld. Lower Authorities had applied the multiplication formula based upon the property being Flat No.18 purchased in the year 2006, which is patently in contravention of the provisions of law. The ld. Counsel submitted tha....
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....operty to determine the income from house property. At the outset, ld. S. D.R. supported the order of the CIT(A). 5. We have heard the rival contentions and perused the material on record. It is fact that house nos.3 & 4 were alternatively opted for deemed to be let out. The ld. CIT(A) had taken fair market value of the both immovable property for determining ALV. But appellant's contention is found to be acceptable on the basis of various case laws cited by the appellant, wherein identical issue has been decided by the ITAT, Mumbai Bench in case of Shri Shailesh I Shah vs. ITO (supra). The operative portion of the order is reproduced as under: "I have considered the rival submissions made by both the parties, perused the orders of th....