TaxTMI 
TaxTMI 
1989 (1) TMI 154
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.... basis and used as office premises from 3rd June, 1972. The WTO worked out the value of the property as under, holding that the assessee is not entitled to the benefit of r. 1-BB. . Rs. Rent receivable 42,000 Less: Municipal Taxes 16,970 . 25,030 Less: 1/6th for repair 4,171 . 20,859 Less: Ground Rent 600 . 20,259 Less: Collection charges @ 6 per cent 1,212 . 19,047 Capitalised at 9 per cent, the value worked out to Rs. 2,11,633 or say Rs. 2,11,600. 3. Before the CWT (A), the submission of the learned assessee counsel was that the valuation should be worked out as under: Rent receivable . Rs. 42,000 Less: Municipal Taxes . Rs. 17,550 . . Rs. 24,450 ....
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....ived or receivable cannot be taken into account for determining the value of the immovable property and rather standard rent determined by the prescribed authority has to be taken into account. In this connection reliance was placed on the decisions of the Supreme Court in the case of Dewan Daulatrai Kapoor vs. New Delhi Municipal Committee & Anr. (1980) 122 ITR 700 (SC) and in the case of Dr. Balbir Singh & Ors. vs. Municipal Corporation of Delhi (1985) 46 CTR (SC) 208 : (1985) 152 ITR 388 (SC). Continuing his arguments, he submitted that the Department has all along accepted the value of the property under r. 1BB as returned by the assessee. The assessee counsel also invited our attention to the RAN Application No. 136/SR of 1988 dt. 20th....
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.... application No. 136/SR of 1988 of the assessee, it is clear the user of the property has been changed from commercial to residential long back, and the property is being used by the assessee for residential purposes only. Now, the question arises whether the actual rent received or receivable or standard rent which has to be taken into account for arriving at the value of the building. The assessee counsel has placed reliance on the decisions of the Supreme Court in the cases of Dewan Daulatarai Kapoor & Dr. Balbir Singh. In these decisions, the Hon'ble Supreme Court has laid down the principle that a landlord cannot lawfully expect to get more rent than the fair rent which is payable according to the principle laid down under the Rent Con....
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....eceivable by the owner in respect of the said property. It is now clear that after 1st April, 1976, the actual rent received or receivable shall be taken into account in determining the annual rental value of the property and not the standard rent. The decisions cited by the learned assessee counsel pertain to the years prior to the amendment brought in the IT Act and WT Rules, and therefore, they do not apply to the facts and circumstances of the present case. Here we are concerned with the asst. yr. 1981-82 and, therefore, the amended provisions shall be applicable. 8. Now the question arises as to whether the assessee is entitled to 1/6th for repairs and collection charges at 6 per cent to arrive at the net annual value of the propert....