2014 (9) TMI 763

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....as under:- "Whether on the facts and circumstances of the case, the Tribunal was right in law in holding that the annual letting value of the self occupied flat in Usha Kiran Building has to be the sum equivalent to the standard rent under the Bombay Rent Control Act and not the Municipal Annual Rateable value in computing the property income u/s. 23 of the Income Tax Act, 1961 ?" 2. The facts in Income Tax reference of 1997 would be enough to dispose of these references. 3. The assessee is an individual. The assessment year is 1984-85. The assessee who is the owner of a flat and occupant herself was subjected to an assessment. The assessee returned income of Rs. 1,032/- only on the basis of municipal rateable value. Based on the c....

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..... In such circumstances, we are of the opinion that the question forwarded by the Tribunal does not require any separate decision or answer. There are enough guidelines in the judgments referred by us and they would enable us to answer this question by referring to what has been held by the Full Bench of the Delhi High Court and followed by us in Income Tax Appeal No.1213 of 2011 in Commissioner of Income Tax-12 V/s. Tip Top Typography decided on 8th August, 2014 , The conclusion of the Full Bench of the Delhi High Court reads as under:- (I ALV would be the sum at which the property may be reasonably let out by a willing lessor to a willing lessee uninfluenced by any extraneous circumstances. (ii) An inflated or deflated rent based on....

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....AIR 1968 SC 441, 442: "It is wellrecognized principle in rating that both gross value and net annual value are estimated by reference to the rent at which the property might reasonably be expected to let from year to year. Various methods of valuation are applied in order to arrive at such hypothetical rent, for instance, by reference to the actual rent paid for the property or for others comparable to it or where there are no rents by reference to the assessments of comparable properties or to the profits carried from the property or to the cost of construction." 9. In our view, in the judgment in Tip Top Typography after concurring with the conclusion of the Full Bench of the Delhi High Court, we have held that the assessing officer....