TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 1679
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....rmination of Annual Letting Value (in short "ALV") of house property. Therefore, for the sake of brevity, the grounds of appeal taken by the Revenue as well as the assessee For AY 2013-14 in ITA No.6836/Mum2017 and in ITA No.442/Mum/2018 are reproduced below:- Grounds of ITA No.6836/Mum/2017 i. "On the facts and in the circumstances of the case and in Law, Ld. CIT(A) erred in holding that the ratable value of the properties as determined by the Municipal Authorities is the yardstick while failing to consider that Section 23(1)(a) mandates that the annual value is deemed to be the sum for which the property might be expected to be let from year to year.? ii. "On the facts and in the circumstances of the case and in Law , Ld. CIT(A) erred in ignoring the fact that the Assessing Officer had made local enquiries to determine the sum for which the properties could be expected to be let for the year as per Section 23(1)(a) of the I T Act, 1961?" iii. "On the facts and in the circumstances of the case and in Law, Ld. CIT(A) erred in ignoring the facts as brought on record by the Assessing Officer regarding the estimated rent for the properties for the purposes of computing inc....
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....ALV of the house property on the basis of field report obtained from Inspector of Income Tax as per which the prevailing market rate of rent is higher than the ALV determined by the assessee. Therefore, the Ld. CIT(A), was erred in deleting the addition made by the AO towards re-computation of ALV from house property. The Ld. DR further submitted that the Hon'ble jurisdictional High Court of Bombay in the case of CIT vs M/s TIP Top Typography (48 taxmann.com 191), observed that the AO is not bound by the Municipal Rateable Value but free to determine the ALV of the house property on the basis of prevailing market rent. In this case, the AO has determined the ALV on the basis of prevailing market rate by conducting enquiries which is in accordance with ratio laid down by the Hon'ble Bombay High Court in the case of CIT vs Tip Top (Supra). Therefore, the Ld. CIT(A) erred in not considering the ratio of the Hon'ble jurisdictional High Court while deleting the additions made towards re-computation of ALV of house property. The Ld. DR further submitted that in so far as, enhancement of ALV on ad-hoc basis by applying certain percentage is not disputed by the assessee for AY 2012-13. Fur....
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....lue at Rs. 8,473/-. The AO, however, determined the same as per his estimation of the market value at Rs. 15483852/-. The Ld. CIT(A) confirmed the finding of the AO. 12. The Ld. A.R. of the assessee has contended that it was not a case where the flats were actually let out and therefore there was not any suspicion, doubt or dispute as to the rate of rent which might have been actually received by the assessee. He has contended that in this case, the flats were admittedly vacant and therefore the deemed ALV was rightly offered as per the municipal rateable value. He has relied upon the decision of the coordinate bench of the Tribunal in the case of Shri Anil Kashiprasad Murarka vs. ACIT" ITA No.5514/M/2012 decided on 17.12.2014. We have gone through the said decision. The relevant finding of the Tribunal has been given in para 5 of the said order, which for the sake of convenience is reproduced as under: "We have considered rival contentions and found that the issue is covered by the decision of the Hon'ble Bombay High Court in the case of Smt. Smitaben N. Ambani Vs. CWT, reported in (2010) 323 ITR 104 (Born), wherein it was held that the basis on which a self-occupied pro....
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....rned Sr. Departmental Representative could not controvert the above fact and could not brought out to our notice any adverse judgment. Respectfully following assessee's own case in in ITA Nos. 2707, 2708 & 2709/Mum/2013 for AY 2006-07 to 2009-10, and taking a consistent view and allow the appeal of assessee and dismiss the Revenue's appeal. 6. We further noticed that the Hon'ble Bombay High Court in Income Tax Appeal No.1285 of 2015 in the case of Laxmi Jain has considered the issue of determination at ALV of house property on the basis of municipal rateable value and by following its earlier decision in the case of Smt. Smitaben N. Ambani, dismissed the appeal filed by the Revenue. Further, the Hon'ble jurisdictional High Court in the case of Pr. CIT vs Shri Harish Jain (Income Tax Appeal No.1438 of 2016) an associate of the assessee has considered identical question of law in the light of provisions of section 22 and 23 of the Act and by following its earlier decision in the case of Smt. Smitaben N. Ambani (Supra) held as under.The relevant portion of the order in the case of Shri Harish Jain (supra) is reproduced hereunder:- 6 We, however, notice that the Tribunal has taken....