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2015 (9) TMI 740 - AT - Income TaxDetermination of the Annual Value of the property for the purposes of assessment under the head ‘ income from house property’ - CIT(A) deleted the addition made by the Assessing Officer observing that the Annual Ratable Value of the property determined by the Municipal Corporation was lower than the actual rent received and; therefore, the income declared by the assessee under the head “Income from house’ was quite justified - Held that:- The precedents which have been referred by CIT(A) and also the decision of the Tribunal in the case of Shri Manish Ranbir Maker (2013 (8) TMI 895 - ITAT MUMBAI) clearly support the Annual Value of the property as determined by the assessee in his return of income. Factually speaking, it is quite clear that the Municipal Ratable Value of the property is lower than the actual rent received by the assessee and in fact the actual rent received is almost seven times the Municipal Ratable Value. This aspect of the matter, in our view, signifies that the actual rent derived by the assessee is quite reasonable. It is also evident that in case of Shri. Manishi Ranbir Maker (supra) the issue before the Tribunal related to the determination of Annual Value of the property located in the same building as that of the assessee before us. In the case of Shri. Manishi Ranbir Maker (supra) the property was admeasuring an area of 1800 sq. Fts. and the rent derived was ₹ 90,000/- per annum, which compares quite favorably with the rental of ₹ 1,80,000/- per annum being earned in the case of the instant property. The case of the Assessing Officer is based on a rent of ₹ 3.00 lacs per month purported to be earned by Mr. Puneet R. Gupta from a flat located in the same building as that of the assessee. This very comparable relied upon by the Assessing Officer has considered by the Tribunal in the case of Shri Manish Ranbir Maker (supra) for the assessment year 2008-09, which is also the year under consideration before us. CIT(A) has justifiably ignored the action of the Assessing Officer in relying on the rent earned by Mr. Puneet R. Gupta. - Decided against revenue.
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