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2019 (6) TMI 1218 - AT - Income TaxIncome from house property - determination of annual letting value (ALV) - property not let out - HELD THAT:- As regards the property at sl. no.1 when the assessee has not let out the property, in such circumstances the Assessing Officer cannot determine the ALV by applying the market rate but he can do so only on the basis of ratable value assessed by the Municipal Corporation. Assessing Officer is directed to verify whether the ALV shown by the assessee is as per ratable value determined by the Municipal Corporation and if it is not so, the Assessing Officer is directed to determine the ALV on the basis of ratable value of Municipal Corporation. As regards the property at sl. no.2 if the ALV of the property shown by the assessee is more than the ratable value fixed by the Municipal Corporation, then it has to be accepted. AO has determined the ALV purely on estimate basis without being backed by any material - That being the case, the Assessing Officer is directed to verify the ALV shown by the assessee in respect of properties at sr. no.3 and 5 and if it is found that the ALV shown by the assessee is as per the ratable value of Municipal Corporation or more than that, then it has to be accepted. Otherwise, the Assessing Officer is directed to determine the ALV of these properties as per the ratable value of Municipal Corporation. As regards property at sr. no.4 of the Table, the ALV has been shown by the assessee as nil - We direct the Assessing Officer to determine the ALV of this property as per the ratable value fixed by the Municipal Corporation. Before parting, we must observe, the Assessing Officer must afford reasonable opportunity of being heard to the assessee before deciding the issue. Ground no.1 and 2 are allowed for statistical purposes.
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