2012 (4) TMI 727

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....KAR, JM: These appeals are filed by the assessee challenging the respective impugned orders of the Ld. CIT (A)-41, Mumbai for the A.Ys. 2005-06 & 2006-07. 2. The first common issue in both the appeals is the determination of the Annual Letting Value of the properties u/s.23 of the Act. 3. So far as A.Y. 2005-06 is concerned, the A.O. has observed that the assessee has two residential flat....

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....er the municipal rateable value. The assessee has given the said flat on Leave & License basis for a sum of Rs. 11,500/- per month in the earlier year. The A.O. estimated the ALV of the said flat for the four months i.e. @ Rs. 46,000/- from April to July 2004 (by adopting Rs. 11,500/-) by considering the actual rent received by the assessee. The A.O. allowed the deduction at 30% u/s.24. 5. In t....

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....ining the ALV u/s.23(1)(a) the standard rent under the applicable Rent Control Act should be considered. If the local authority for the purpose of the house tax has determined the value then that should be adopted. It is pertinent to note here that in the case of Shiela Kaushik (supra) the Hon'ble Supreme Court has considered the amended sec.23 of the Act. I, therefore, hold that the A.O. was not ....

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....ould determine the ALV of the said flat as per our directions in respect of ground no.2 and if the actual rent received by the assessee is higher as u/s.23(1)(b) then the same should be adopted. In our opinion, law is clear if the actual rent received by the assessee is more than the ALV determined u/s.23(1)(a) and in view of clause (b) to sec.23(1) actual rent received is to be adopted. In the pr....