AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (11) TMI 545
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....ointly along with his wife. The assessee has shown the notional rental value of Rs. 64,800/- basing on the valuation determined by the Kolkata Municipal Corporation. According to Assessing Officer the value determined by the Municipal authority way back in 1994 and did not accept the same. Thereby he conducted enquiries through web process i.e. www.19acre.com and OLX and also deputed one of his inspectors to enquire into the credible value of the property in Kolkata bearing no.Flat-2C, situated at 12/2A/2B/2C at Ballygunge Park Road, Kolkata - 19. Taking into consideration the information received from the above-said website and his inspector determined the annual rental value of the flat at Rs. 7,20,000/- and added the said amount to the total income of the assessee and determined the total income at Rs. 70,33,310/- as against the return of income of Rs. 62,45,214/- passed u/s 143(3) of the Act. 4. As aggrieved by the order of Assessing Officer, the assessee preferred an appeal before the CIT(A). The CIT(A) did not accept the method of investigation done by the Assessing Officer and adopted the 10% appreciation for year on year on such property and determined the annual rental v....
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.... 6,000 ) as claimed by the appellant for a 2,000/- sq. feet flat in a post area such as Ballygunge, Park was a near utopian fancy in the subject A.T 2011-12. 8. Adhering to the Act and the relevant section, clause [a] to section 23[1], as pleaded by the appellant / Ld A.R, it is to be determined as to what would be the Annual Rental Value, even if the municipally method of Valuation is to be considered and adopted. The Ld A.R has not produced any documents about the current Municipality Value, which will be definitely higher that what it was during purchase about 16 years back, It would be very reasonable, in my considered view that the rental value would appreciate 10% year-on year for such prime property Kolkata in increment in rent for such properties, if only at a lower side. If the reasonable assumption is such, then what was fetching Rs. 72,000 during 1994 could be expected, at a compounded rate, to fetch Rs. 3,30,838/- in 2011, or a monthly rent of Rs. 27,570/-. In my considered view that would be a more realistic method of calculating the Annual Rental Value of the property in question and would take care of all the factors at hand. The assessee would be entitled to the ....
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....the present case, the value as determined by the Kolkata Municipal authority w.e.f 1994 and the Assessment Year under consideration is 2011-12 therefore the valuation determined by the Kolkata Municipal authority is not at all fair and reasonable yardstick to consider the same. Therefore the order passed by the CIT(A) in restricting the addition to an extent of Rs. 2,13,216/- is not justified and the value determined by the Assessing Officer undergoing enquiries taking into consideration the relevant source is justified. We completely agree with the reasons given by the Assessing Officer in his order which is reproduced hereinbelow: 5. During the assessment proceeding, the assessee has asked to furnish details regarding flat, new flat as reflected in balance sheet. The assessee has furnished details of flats as under: Particulars Address Date of Possession Flat (fully owned) L-32, Tarapore Towers, Oshiwara, Andheri (West) Mumbai - 400 058, Maharashtra. 2002 New Flat (in the name of wife) (50% ownership) Flat-2C, 12/2A/B/C, Ballygunge Park Road, Kolkata - 700 019, West Bengal 2004 On the basis of submission, the assessee was asked as per order sheet dated 09.....
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....r. Partha Kumar Pailan and security guards Mr. Kanak Mondal and Mr. Seniram Bhattacharya. They stated that all the flats at 12/2A Ballygunge were occupied by their respective owners. Further for knowing the market rental value of the flat, the departmental inspector met nearby property dealers and brokers and they told that rent of flat of 2,000/- sq. ft. At Ballygunge, Park Road would be at least Rs. 60,000/- per month for residential purpose. The inspector has given the figure of reasonable rent for residential purpose at Rs. 60,000/- per month is also based on the rates available at the websites www.99acres. Com and OLX. In my opinion the expected reasonable rent at Rs. 60,000/- per month for Flat 2C carefully considering that flats in Ballygunge Park Road, Kolkata are very costly meaning there while that the annual value of property Rs. 7,20,000/-. On examination of the financial statement of the assessee the investment in flat matches with the total consideration paid as per the deed of conveyance amounting to Rs. 48 lac (excluding stamp duty). Thus the assessee is enjoying complete beneficial ownership of having paid the entire consideration from his own sources. Therefore....
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....etting value if he finds that the same is not based on relevant material for determining the "fair rent‟ in the market and there is sufficient material on record for taking a different valuation. We may profitably reproduce the following observations of the Supreme Court in the case of Corporation of Calcutta Vs. Smt. Padma Debi, AIR 1962 SC 151: "A bargain between a willing lessor and a willing lessee uninfluenced by any extraneous circumstances may afford a guiding test of reasonableness. An inflated or deflated rate of rent based upon fraud, emergency, relationship and such other considerations may take it out of the bounds of reasonableness." 17. Thus the rateable value, if correctly determined, under the municipal laws can be taken as ALV under Section 23(1)(a) of the Act. To that extent we agree with the contention of the learned Counsel of the assessee. However, we make it clear that rateable value is not binding on the assessing officer. If the assessing officer can show that rateable value under municipal laws does not represent the correct fair rent, then he may determine the same on the basis of material/ evidence placed on record. This view is fortified by t....