TaxTMI 
TaxTMI 
2017 (12) TMI 1325
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....six days. Condonation petitions have been filed by the respective parties. Both the parties did not raise any serious objection to the respective pleas. Accordingly, delays in both cases are condoned and appeals are admitted. 3. Both the appeals relate to an issue regarding assessment of annual rent of a property belonging to the assessee located at North Beach Road, Chennai. Assessee had originally filed her return of income for the impugned assessment year disclosing income of Rs. 31,74,020/-. In the statement of income filed alongwith return, assessee had shown rentals from two properties one at Cathedral Road and another at North Beach Road, both in Chennai. Annual rent from the Cathedral Road building was shown as Rs. 33,15,006/- ag....
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....bsp; taxes paid Portion 1 Portion 2 Portion 3 212176 476440 231067 38682 78036 41120 14852 33350 15120 53534 111386 56240 Total 919683 157838 63322 221160 1/3^rd share of the above 306561 52613 21107 73720 Contention of the assessee was that income from house property had to be worked out in accordance with Sections 23 & 24 of the Income Tax Act, 1961 (in short ''the Act''). As per the assessee the data relevant for such computation was as under:- Particulars ....
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.... Road. However, according to him, for applying multiplication factor of 21.88, what ought have been considered was Municipal tax component alone. Such Municipal tax component was Rs. 52,613/- only as per the ld. Commissioner of Income Tax (Appeals). Thus, according to him, rentals from North Beach Road property could be considered only as Rs. 11,51,172/- after deducting standard deduction u/s.24 of the Act. He directed the ld Assessing Officer to consider the annual rent of the North Beach Road property at Rs. 11,51,172/- against Rs. 23,97,830/- considered in the assessment. 6. Now before me, assessee is aggrieved on the methodology adopted for fixing the annual value of her property at North Beach Road. According to her annual value sho....
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....2/-. It is also true that Municipal Tax as a percentage of the rental income came to 4.57% and this gave a multiplication factor 21.88. But the question before me is whether the same multiplication factor can be adopted wherever a property is located. Ld. Assessing Officer had adopted the multiplication factor of 21.88 on the Municipal Tax, for the property situated in North Beach Road. At this juncture, it is apposite to reproduce Section 23 of the Act. ''1) For the purposes of section 22, the annual value of any property shall be deemed to be. (a) the sum for which the property might reasonably be expected to let from year to year ; or (b) where the property or any part of the property is let and the actual rent....
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....ilding 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 house is actually let during the whole or any part of the previous year ; or (b) any other benefit therefrom is derived by the owner. (4) Where the property referred to in sub-section (2) consists of more than one house? (a) the provisions of that sub-section shall apply only in respect of one of such houses, which the assessee may, at his option, specify in this behalf ; (b) the annual value of the house or houses, other than the house in respect of which the assessee has exerci....