TaxTMI 
TaxTMI 
2016 (3) TMI 452
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....al, Shri Hariom Patel, ld. counsel for the assessee, advanced arguments, which is identical to the ground raised by asserting that the Assessing Officer estimated the rental income at Rs. 5,89,600/- of two rooms and the assessee let out identical two rooms to another person on rent for Rs. 48,000/- only. Reliance was placed upon the decision in CIT vs Akshay Textile Trading and Agencies Pvt. Ltd. 304 ITR 401 (Bom.) and ACIT vs Mayur Recreational and Development Ltd. (2008) 301 ITR (AT) 324 (Del.)(SB). The crux of the argument is that actual rent was received only to the tune of Rs. 48,000/-. 2.1. On the other hand, the ld. DR, Shri G. N. Makwana, strongly defended the impugned order by contending that actual rent received by the assessee....
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.... to reduce the incidence of taxes. The whole arrangement is designed to defeat the law. Fact remains that the income of Rs. 5,89,600/- was actually received and the assessee exploited the commercial rights as beneficial owner. Hence, the fact that the assessee has chosen not to receive the fair rent from his legally owned flats in consideration for receipt of rent for some other flats, will not absolve him from not charging the market rent of the flat legally owned by him. In the impugned order, there is uncontroverted fact that the municipal ratable value as per details filed by the assessee is Rs. 52,410/-, which is more than the actual rent declared by the assessee at Rs. 43,200/-. It means that the rent declared by the assessee was not ....
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....l rent received or receivable by the owner shall not include, subject to such rules8 as may be made in this behalf, the amount of rent which the owner cannot realise. (2) Where the property consists of a house or part of a house which- (a) is in the occupation of the owner for the purposes of his own residence; or (b) cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, the annual value of such house or part of the house shall be taken to be nil. (3) The provisions of sub-section (2) shall not apply if- (a) the house or part of the ....
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....ned, the Hon'ble High Court was deeming with section 23(1)(a) of the Act using the expression "the sum for which the property might reasonably be expected to be let out from year to year." In that case, there was no evidence on record that the transaction was not genuine. In that situation, the Hon'ble High Court reached to a conclusion, whereas, in the present appeal undisputedly, the assessee received the amount of Rs. 5,89,600/-, therefore, this judicial pronouncement may not help the assessee. Likewise, in the case of Mayur Recreational and Development Ltd., the question before Tribunal was with respect to annual letting value and its determination and actual rent received by the assessee. The question was as to how the standard rent is....