1980 (10) TMI 93

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....ompleted originally for the three years under appeal under s. 143(1). The income from property was computed on the basis of the ratable value of Rs. 3,820 whereas the actual amount received by the assessee was Rs. 24,000 The ITO, therefore, restored to proceedings under s. 147 and made reassessments. 3. Aggrieved by the decision of the ITO, the assessee came up in appeal before the AAC. It was argued before the AAC that the assessee was an old assessee, had income from property, a share in the firm of M/s N. Sobhraj and interest income. Alongwith the return of income filed originally, the assessee had filed a statement of income wherein computation of income was shown on the basis of the annual letting value of the property as determined....

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....lue of the property was confined to the Municipal ratable value. It was argued that the actual rent received should have formed the proper basis for computation of the income from property and that the mistake committed by the ITO in the original assessments was rightly rectified by the ITO in the reassessment proceedings. 5. On the other hand, the assessee defended the order of the AAC both in fact an on law and for this purpose he relied upon a decision of the Tribunal in the case of Shri D.L. Shah dt.. 1st Sept., 1980. 6. We have considered the rival contentions advanced by both the sides. At the outset we must say that from the records made available, by the Department to the Deptl. Rep., we were not in a position to peruse the re....

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....80) 122 ITR 700 (SC). It has been held by the Supreme Court in that case that the annual; value of a building cannot vary as it is tenanted or self occupied. When the Rent Control Legislation provides for fixation of standard rent which alone and noting more than which the tenant shall be liable to pay to the landlord, it does so because it considers the measure of the standard rent prescribed by it to be reasonable. It lays down the norm of the reasonableness in regard to the rent payable by the tenant to the landlord. Any rent exceeding this norm of reasonableness is regarded by the Legislature as unreasonable or excessive. The legislature obviously regards recovery of rent in excess of the standard rent as exploitative of the tenant and ....