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2014 (7) TMI 898 - AT - Income TaxEstimation of annual value of house property – Rent received disregarded - tax authorities have considered the value of property only for determining the Annual Rental value - Held that:- Charge u/s.22 is not on the market rent but is on the annual value and in the case of property which is not let out, municipal value would be a proper yardstick for determining the annual value - If the property is subject to rent control laws and the fair rent determined in accordance with such law is less than the municipal valuation, then only that can be substituted by the municipal value - the AO has determined the Fair rental value in both the years by considering the value of investment of the flat - CIT(A) has slightly reduced the same in AY 2006-07 and confirmed the same in AY 2007-08 - the tax authorities have considered the value of property only for determining the Annual Rental value – Relying upon Dy. CIT Versus Reclamation Realty India Pvt. Ltd.[2010 (11) TMI 477 - ITAT, MUMBAI] - the Standard rent / Municipal rateable value has to be considered as fair rental value - the rent received by the assessee is more than the municipal rateable value - the rent received by the assessee has to be taken as the Annual value u/s 23 of the Act – order of the CIT(A) set aside – Decided in favour of Assessee.
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