TaxTMI 
TaxTMI 
2021 (2) TMI 532
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...., the learned CIT(A) erred on confirming the Annual Letting Value (ALV) of the premises owned by the appellant at Central Garden Complex, Chunabhatti, Mumbai at Rs. 64,57,488/- instead of Rs. 3,75,506/- offered by the appellant based on the municipal rateable value of the said premises. 2. The learned CIT(A) failed to appreciate that the aforesaid premises were vacant throughout the previous year and accordingly the appellant has rightly adopted the municipal rateable value for the purpose of determining income under the head Income from House Property. 3. The order passed by the learned CIT(A) is illegal, bad in law, ultra vires and contrary to the provisions of law and facts and is passed without application of mind and ....
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....to be the sum for which the property might reasonably be expected to let out from year to year. Therefore, the municipal value was not to be taken as fair ALV of the property. Applying the average rate per square meter at which other 12 flats were let out by the assessee, Ld. AO worked out ALV of these 7 flats as Rs. 64.57 Lacs. After reducing municipal taxes & statutory deduction of 30%, the net ALV came to be Rs. 43.83 Lacs. Since the assessee had already offered ALV of Rs. 1.26 Lacs, the differential amount of Rs. 42.57 Lacs was further added to the income of the assessee. 4. Before Ld. CIT(A), the assessee inter-alia relied upon favorable decision of Hon'ble Bombay High Court in CIT V/s Tip Top Typography (48 Taxmann.com 191) and als....
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....lso by following the decision of Hon'ble Bombay High Court in M/s TIP Top Typography (2014) 368 ITR 330 and also in Moni Kumar Subba (2011) 333 ITR 38, upheld the determination of ALV on the basis of Municipal Rateable Value. The bench while adjudicating appeals for AYs 2013-14 & 2014-15 further observed that: - 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 ....
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....ng Officer by reversing the rateable value of the property owned by the assessee which was vacant. While complying the taxability of deemed rental income in terms of Sections 22 and 23 of the Act, the Assessing Officer discarded the rateable value fixed by the Municipal Corporation for assessing the tax on such properties and substituted the same with market rate as prevailing in the area, as estimated by him after collecting data with respect to the same. The Tribunal, however, deleted addition on the ground that in case of vacant property, the tax on rental income in terms of Section 23 of the Act can be calculated only on the basis of rateable value assessed by the Municipal Corporation. 9 We find that this view of the Tribunal ....