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2014 (12) TMI 1304 - AT - Income TaxALV determination - basis on which a self-occupied property is valued - Held that:- The issue is covered by the decision of the Hon’ble Bombay High Court in the case of Smt. Smitaben N. Ambani Vs. CWT, reported in (2009 (1) TMI 430 - BOMBAY HIGH COURT) as held that the basis on which a self-occupied property is valued under rule 1BB of the Wealth-tax Rules and municipal ratable value is arrived at under the municipal law is the same i.e. “a reasonable amount of rent that can be expected by the owner from a hypothetical tenant”. That while arriving at such reasonable amount of rent that can be expected by the owner from a hypothetical tenant, the amount of statutory deduction, if any, permissible under the local municipal law must be added to the ratable value. Thus, the Hon’ble High Court held that while applying the provisions of rule 1BB for valuing the self-occupied property, municipal rateable value with addition of statutory deductions, if any, may be adopted instead of standard rent, for arriving at the gross maintainable rent. Respectfully following the order of jurisdictional High Court, matter is restored back to the file of AO with a direction to recompute the ALV in terms of above decision
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