1988 (12) TMI 137

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.... been raised in the appeals and the same is as under: "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in directing the IAC (Asst) to work out gross maintainable rent of the property, taking into account the permissible standard rent under the Bombay Rent Control Act." The dispute relates to valuation of a property purchased by the assessee. Initially the....

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....h area in Bombay and it could easily fetch a rent of Rs. 5,000 per month. In the circumstances, the direction of the CIT(A) that the valuation should be determined on the basis of maintainable rent, which according to him, would be only Rs. 900 is not correct. The reliance placed by the CIT(A) on the decision of Dewan Daulat Rai Kapoor vs. New Delhi Municipal Committee and Anr. (1980) 122 ITR 700 ....

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....amendment in 1975 to the provisions of s. 23(1). The said amendment only directed the ITO to compute the annual value of a house property based on the actual rent received if the same was in excess of the standard rent or the rateable value determined by the municipal authorities. This, according to the assessee, is not the dispute in this case. It is an admitted fact that the property in question....

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.... of s. 40 of the Finance Act, 1983 is evident from s. 40(5)(a) of the same Act. That clause spells out the clauses of WT Act which will have no effect for the purpose of s. 40 and s. 7(1) has not been excluded. Sec. 7(1) of the WT Act reads as under: "Subject to any rules made in this behalf, the value of any asset, other than cash, for the purposes of this Act, shall be estimated to be the pric....