2017 (6) TMI 548

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....order of CIT(A) deleting the addition made by AO of ALV under section 23(1)(a) of the Act. For this Revenue has raised following two grounds: - "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was correct the deleting the addition of Rs. 46,46,371/- made under the head 'Income from House Property', relying on High Court order in the assessee's own case for earlier years without appreciating that each assessment year is separate unit and hence Annual Letable Value determined by A.O. was on the basis of substantial evidence brought on record that assessee was showing lesser rental income compared to that shown by owners in respect of flats located in the same building " 2. ....

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....es where there is established fraud, collusion or an attempt Is made by the parties to inflate or deflate the rent because of relationship or such other consideration, otherwise the determination of the rent or fees between the lessor and the lessee cannot be said to be influenced by any exigencies aforesaid for the Income Tax Authorities to determine and decide the Annual Letting Value. In all these cases, the parties have fairly brought to our notice a judgment of this Court in Commissioner of Income Tax-12, Mumhai Vs. Tip Top Typography Income Tax Appeal No. 1213 of 2011 and connected appeals] decided on 8th August, 2014. One of us (S.C. Dharmadhikari, J.) is a party.to this judgment. We have followed the ratio of the Full Bench of the D....

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....has inter alia also referred to the judgment in the case of Tip Top Typographics with approval and has specifically stated that (the law) "does not permit the revenue to reject the amount determined as rent or license fees by the assesse on mere doubt or suspicion. There has to be cogent and satisfactory material to indicate that the rent or fees determined by the parties are not indicative of the fair or market rent. The Annual Letting value has to be determined and decided only in such cases where there is established fraud, collusion or an attempt is made by the parties to inflate or deflate the rent because of relationship or such other consideration, otherwise the determination of the rent or fees between the lessor and the lessee cann....