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2015 (5) TMI 548 - HC - Income TaxEstimation of ALV of property - IT estimating the ALV of the property at Nos. 14-16, Aurangzeb Road, New Delhi at ₹ 9,32,888 as against ₹ 5,12,932 declared by the assessee in the return - Held that:- Annual value of the property for determining the income from house property is deemed to be the sum for which the property might reasonably be expected to let from year to year or where the property is let and the annual rent received or receivable is in excess of such sum, the amount so received or receivable. It thus follows that the determination of the annual value is to be made at a sum for which the property might be reasonably expected to let from year to year and the same is to be compared with the actual rent received. If the rent so received or receivable is higher than the amount at which it would be reasonably expected to let from year to year, then the actual rent received will be adopted as an annual value. The swimming pool and health club were not business apparatus and were not used for carrying on business of trading or manufacturing or professional activities. Hence, the swimming pool could not be treated as plant. See Anand Theatre [2000 (5) TMI 4 - SUPREME Court ] - AO shall proceed to determine the annual letting value (ALV) of the suit property in respect of the years 1990-91 and 1992-93 in terms of the above directions.
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