TaxTMI 
TaxTMI 
2015 (5) TMI 548
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....r restoration of the appeal and condoning the delay. 5. Accordingly, the CMs are allowed and the appeal is restored to the file. ITA 266/2002 6. In the present case, the question of law framed by the Court on 10.12.2002 was as follows : "Whether on the facts and in the circumstances of the case the Tribunal was correct in law in remanding the case back to the Income Tax Officer to determine afresh the annual letting value of the property No.14-16, Aurangzeb Road, New Delhi in respect of assessment years 1990-91 to 1992-93?" 7. The facts briefly are that the assessee, a limited company, deals in real estate business and owned two properties : 14-16, Aurangzeb Road, which had been given to the Directors to use as residence. The....
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....its previous views - which had favoured the assessee. It therefore, decided to refer the precise question, having regard to the facts of this case to a special bench. The question referred was as follows : "Whether, on the facts and in the circumstances of the case, and having regard to all the earlier orders of the Tribunal, the IT authorities were justified in estimating the ALV of the property at Nos. 14-16, Aurangzeb Road, New Delhi at Rs. 9,32,888 as against Rs. 5,12,932 declared by the assessee in the return?" 9. After due consideration of the relevant case law including the judgment of the Supreme Court in Dewan Daulat Rai Kapoor V. New Delhi Municipal Committee [1980] 122 ITR 700 etc., the Special Bench in its decision (report....
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....ssee in the present case was undisputedly given on rent during the year under consideration and as such, the provisions as contained in Clause (b) of Sub-section (1) of Section 23 are applicable for determining its ALV. A perusal of the said provisions shows that the annual value of the property for determining the income from house property is deemed to be the sum for which the property might reasonably be expected to let from year to year or where the property is let and the annual rent received or receivable is in excess of such sum, the amount so received or receivable. It thus follows that the determination of the annual value is to be made at a sum for which the property might be reasonably expected to let from year to year and the sa....
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....pal Committee (supra), it was held by the Hon'ble Supreme Court that even though there would ordinarily be in a free market close approximation between the actual rent received by the landlord and the rent which he might reasonably expect to receive from a hypothetical tenant, where the rent of the building is subject to rent control legislation, this approximation may and often does get displaced. It was also held that the determination of standard rent is not left to the unfettered and unguided discretion of the Rent Controller and he is required to fix the standard rent in accordance with formula laid down in Section 6. It was also held that the compulsive force of the formula laid down in Section 6 for the determination of standard ....
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.... What the assessing authority thus arrives at is merely its own estimate of standard rent for the purpose of determination of ALV of the building and it is the perfect legitimate function within the scope of the jurisdiction of the assessing authority." 11. It is thus evident that the reasoning contained in the impugned order has been discarded and in effect overruled. This Court notices that the impugned order had directed as follows : "We are of the view that on the facts and in the circumstances of the case and for the reasons given in the impugned appellate order the Ld. CIT(A) was justified in holding that swimming pool was not plant but was part of the building and as such depreciation was allowable at 10% and not 33.33% as clai....