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2011 (10) TMI 32 - ALLAHABAD HIGH COURTIncome from house property - Annual rent - Whether the Income Tax Appellate Tribunal was correct in law in directing the Assessing Officer to determine the property income on the basis of actual rent received by the assessee and in ignoring the provisions of law as contained in Section 23 (1) (a) of the Income Tax Act, 1961? - Held that:- Assessee are two sisters - They let out the property to a private company in which their husbands are Directors. The Company in turn, admitted let out the property on much higher rent. - when the Tribunal decided to remand the matter, directing the Assessing Officer to determine the income from house property on the basis of actual rent received by the assessee, all the questions whether transaction was sham transaction and further whether the assessee had received loans from the Company, to which the property was let out and whether rent had to be fixed on the presumptive amount receivable under Section 23 (1), should have been left open to be considered by the Assessing Officer. The Tribunal wrongly foreclosed the matter in holding against the policy of the statute to the effect that where the actual amount received was not in excess of the sum referred to in clause (a), and clause (b) would apply. - the substantial question framed is decided in favour of the revenue and against the assessee.
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