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2018 (5) TMI 45 - AT - Income TaxAnnual letting value (“ALV”) of the property brought to tax - Determination of the rental income - whether the authorities below are justified in bringing the notional income to tax under the head “income from house property” instead of returning a finding that any income from such building has to be assessed as business income and in the absence of any real income from the building, nothing has to be brought to tax? - Held that:- The facts and contentions advance in the case of Ansal Housing Finance and Leasing Co. Ltd. [2012 (11) TMI 323 - DELHI HIGH COURT] are almost identical to the facts and contentions involved in this matter. Hence, while respectfully following the same, we hold that the levy of income-tax in this case shall not be on the premise whether the assessee carries on business as landlord, but on the basis of ownership, as such, the authorities below have rightly held that the ALV of this building has to be brought to tax. Quantification of ALV - Held that:- It is incumbent upon the revenue to ascertain the standard rent as per the relevant rent control legislation and to take the fair rent or the standard rent, whichever is lower, as the ALV of the building. In the case in hand, such and exercise does not seem to have been undertaken by the AO and also the grievance of the assessee is that the source of taking non relevant to the fair rent or the report of the inspector are revealed so that the assessee could have had an opportunity to ask the authorities for determination of the correct ALV. Thus while affirming the action of the authorities below in bringing the ALV of the premises at 9, Tolstoy Marg, Connaught Place, New Delhi to tax, we deem it just and proper to set aside the issue relating to the determination of the correct and proper ALV in the light of the decision of the Hon’ble jurisdictional High Court in the case of Moni Kr. Subba (2011 (3) TMI 497 - DELHI HIGH COURT ).
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