TMI Blog2011 (2) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... deleting the additions made by the Assessing Officer on account of notional interest on security deposit for computing the annual value of the property – Decided against Revenue. - I.T.A. Nos. 2347 & 2348/Mum/2010 - - - Dated:- 25-2-2011 - Shri P.M. Jagtap, and Smt. Asha Vijayaraghavan, JJ. For the Appellant : Shri Vijay Shankar For the Respondent : Shri Sanjay Somani ORDER PER P.M. JAGTAP, AM : These two appeals are preferred by the Revenue against two separate orders passed by the learned Commissioner of Income-tax (Appeals)-19, Mumbai, both dated 01.01.2010 for the assessment years 2005-06 and 2006-07 and since a common issue is involved therein, the same have been heard together and are being disposed of by this si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal. 3. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that similar addition made by the Assessing Officer on account of notional interest on interest free security deposit in assessee s own case for the assessment year 2004-05 was deleted by the learned CIT(A) and the order of the learned CIT(A) giving the relief to the assessee on the same issue in that year has already been upheld by the Tribunal vide its order dated 9.09.2010 passed in ITA No. 4229/Mum/2008 relying mainly on the decision of the Hon ble jurisdictional High Court in the case of J.K. Investors (supra).4. It is also observed that a similar issue has been decided by the Coordinate Bench of this Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alone represented actual value of the property for the purpose of computing income under the head income from house property . Thereafter, amendment was made and as per the amended provisions of section 23(1)(b) made applicable from A.Y. 1976-77, the actual rent received was treated to represent the annual value provided it exceeds the sum for which the property might reasonably be expected to let from year to year. The legislative intention of the said amendment was explained by CBDT in Circular No. 204 dtd. 24.7.76 and after taking note of the said circular and after reproducing the relevant portion thereof in its order passed in the case of Reclamation Realty India P. Ltd. (supra), the Tribunal held that the position of law prior to int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aushish vs. CIT 131 ITR 435 (SC), wherein the question arose in the context of provisions of section 23 of the Income Tax Act and it was held by the Hon ble Supreme Court that the ratio of its decision in the case of Dewan Daulat Rai Kapoor (supra) would be equally applicable in interpreting the definition of Annual Value given in section 23(1) of the Income Tax Act. It was held that these definitions are given in identical terms and it was impossible to distinguish the definition of annual value given in section 23(1) of the Income Tax Act from the definition of that term given in the Delhi Municipal Corporation Act 1957 and the Punjab Municipal Act, 1911. It was therefore held adopting identical line of reasoning that even if the stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the annual Municipal value provided such a value is not above the standard rent receivable and the same could be adopted as the safest guide for this purpose. As mentioned by the Tribunal in its order passed in the case of Reclamation Realty India P. Ltd. (supra), the said decision was rendered by the Hon ble Calcutta High Court after taking into consideration the provisions of section 154 of the Bombay Municipal Corporation Act wherein the manner of determination of ratable value was laid down which was based on the annual rent for which the property mighty reasonably be expected to let from year to year. The Hon ble Calcutta High Court held that the Municipal valuation and annual value u/s 23(1)(a) of the income Tax Act thus are on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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