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2014 (9) TMI 763 - HC - Income TaxComputation of property income u/s 23 - annual letting value of the self-occupied flat - Whether the Tribunal was right in holding that the annual letting value of the self-occupied flat in Usha Kiran Building has to be the sum equivalent to the standard rent under the Bombay Rent Control Act and not the Municipal Annual Rateable value in computing the property income u/s. 23 of the Income Tax Act, 1961 – Held that:- Following the decision in Commissioner of Income Tax-12 V/s. Tip Top Typography [2014 (8) TMI 356 - BOMBAY HIGH COURT] - the AO in the cases of properties, which are subject to Rent Control Legislation cannot ignore the same - If the standard rent has not been fixed under the Rent Control Legislation by the competent authority, it is the duty of the AO to determine the same in terms of the Rent Control Legislation – there was no basis for an apprehension that the Tribunal would ignore the Rent Control Legislation and prefer some other mode in determining the fair rent or annual letting value of the property u/s 23(1)(a) - the principle cannot be any different for self-occupied properties and in relation to which the exercise must be carried out in terms of the relevant section 23(1) of the I.T. Act – Decided in favour of assessee.
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