1983 (11) TMI 5

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....y No. 4, Chittaranjan Road, Madras-18, should be taken at Rs. 12,000 against Rs. 36,000 adopted by the Income-tax Officer ? " The assessee in this case along with two others owns a property known as " Laurels " in Chittaranjan Road, Madras. For the assessment year 1976-77, the assessee, while computing his property income, had adopted his share of annual letting value of the building at Rs. 4,000, being the 1/3rd share of the total annual letting value of Rs. 12,000, adopted for the whole building. The assessee sought to support the annual letting value of Rs. 12,000 adopted by him by referring to the annual letting value fixed by the Corporation of Madras for the same building at Rs. 9,828. The Income-tax Officer, however, found that th....

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....ing value and as the property was constructed for personal occupation of the assessee, the possible yield from the property was not material, nor the manner in which the building was constructed nor did the material used for construction have any relevance in fixing the annual letting value and that what was material was the rent the building would fetch if it were to be let out and as the municipal authorities had fixed the annual letting value at Rs. 9,828 after visiting the property, the value adopted by the assessee should be taken to be correct and reasonable. The Revenue, however, contended before the Tribunal that the annual letting value fixed by the Income-tax Officer was a reasonable one having regard to the fact that considera....

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.... the Income-tax Officer ignored the annual letting value fixed by the municipal authorities, but proceeded to take into account the improvements made to the building at a cost of Rs. 5,58,798 and working out the yield or return on such investment at 6% fixed the annual letting value of the entire building at Rs. 36,000. Therefore, the Income-tax Officer has not gone into the question as to whether the annual letting value fixed by the municipal authorities was before or after the improvement. Admittedly, in this case, the house has not actually been let out, but it is used for the owner's residence. Perhaps taking into account this circumstance, the municipal authorities had fixed the annual letting value at Rs. 9,828. Since there is no mat....