2016 (4) TMI 1164

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....2006-07. Since common issue arises for consideration in all these appeals, we heard the appeals together and disposing of the same by this common order. 2. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that the assessee let out a house to M/s Data Software Research Company Pvt. Ltd. for a monthly rent of Rs. 7500/-. The Assessing Officer estimated the rental value at Rs. 1,90,240/- as against the rental income declared by the assessee at Rs. 90,000/-. The Assessing Officer estimated the rental value at Rs. 12,00,000/- per annum after increasing the same at the rate of 25% per annum. According to the Ld. counsel, increasing the rental value at 25% is abnormal. It cannot be anybody's imagination that the rental value is i....

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....rty may reasonably be expected to let out from year to year or where the property is let out and the actual rent received or receivable by the owner in respect thereof. In the case before us, a property was let out to a holding company, namely, M/s Data Software Research Company Pvt. Ltd. Since the property was let out to a holding company, the authorities below increased the rent received by 25% per annum. This Tribunal is of the considered opinion that increasing the value at the rate of 25% per annum is highly arbitrary. The rental value cannot increase at the rate of 25% year to year. 5. The rental value would depend upon the demand for the property in the market. Normally, when the property was let out for agreed rent between the less....