Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 280 - HC - Income TaxAnnual letting value of the property - Assessee let out property to A-One Tours @ 3000 pm which further sub-let @160000 pm to DHL World - AO of the opinion that assessee and A- One are sister concerns and income has escaped assessment - CIT(A) held A-One to be seperate assesee - Tribunal affirmed CIT(A)- High Court placed reliance on Commissioner of Income Tax vs. Moni Kumar Subba (2011 - TMI - 205926 - DELHI HIGH COURT) to determine the value of house property - "the annual value fixed by the Municipal Authorities can be a rationale yardstick. However, it would be subject to the condition that the annual value fixed bears a close proximity with the assessment year in question in respect of which the assessment is to be made under the Income Tax laws. If there is a change in circumstances because of passage of time, viz., the annual value was fixed by the Municipal Authorities much earlier in point of time on the basis of rent than received, this may not provide a safe yardstick if in the Assessment Year in question when assessment is to be made under Income Tax Act. The property is let-out at a much higher rent. Thus, the AO in a given case can ignore the municipal valuation for determining annual letting value if he finds that the same is not based on relevant material for determining the 'fair rent' in the market and there is sufficient material on record for taking a different valuation." However court didnot gave any ruling on whether or not the rent received by A-One Travels and Tours Pvt. Ltd. can be taxed or not in hands of assessee OR if A-One Travels and Tours Pvt. Ltd. have been taxed, then the appellant cannot be taxed.
|