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2022 (6) TMI 1524 - AT - Income TaxAddition under the head income from house property - HELD THAT - In this case it is an admitted undisputed fact that the property was vacant throughout the year and it was not let out. Therefore as held in the case of Smt. Godavaridevi Saraf 1977 (9) TMI 24 - BOMBAY HIGH COURT the decision of Hon ble High Courts of other States are binding on this Tribunal (Pune Bench). Therefore respectfully following in the case of Vivek Jain 2011 (1) TMI 897 - ANDHRA PRADESH HIGH COURT and Sushma Singla 2016 (12) TMI 1298 - PUNJAB AND HARYANA HIGH COURT we hold that the assessee s rent for the said property shall be calculated as per provisions of Section 23(1)(a) of the Act and Section 23(1)(c) will not be applicable in the case of assessee for the said property. Ground No.1 of the Appellant assessee is dismissed. Annual lettable value (ALV) calculation - AO has calculated ALV based on the fair rent for FY 2013-14 - AR submitted that the ALV shall be calculated based on Municipal lettable value - None of the Lower Authorities have discussed whether Rent Control Act is applicable to the relevant property or not. As in the case VIMAL R. AMBANI 2015 (4) TMI 407 - BOMBAY HIGH COURT has held that Accordingly while determining the annual letting value in respect of properties which are subject to rent control legislation and in cases where the standard rent has not been fixed the AO shall determine the same in accordance with the relevant rent control legislation. If the fair rent is less than the standard rent then it is the fair rent which shall be taken as annual letting value and not the standard rent. This will apply to both self-acquired properties and general cases where property is let out. While carrying out the exercise u/s 23(1) of the Act the Departmental authorities shall follow these guidelines reproduced above provided in the Full Bench decision of the Delhi High Court and followed by a Division Bench of this court in the case of Tip Top Typography 2014 (8) TMI 356 - BOMBAY HIGH COURT . Therefore this issue is set-aside to the file of the AO for verifications. If the property is under Rent Control Act then the AO shall determine the Annual Value as per the guidelines given by the Hon ble Bombay High Court in the above referred decision. If the impugned property is not under Rent Control Act then Municipal Valuation shall be considered as Annual Lettable Value. Accordingly this Ground No.2 is allowed for statistical purpose.
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