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2015 (9) TMI 740 - ITAT MUMBAI

2015 (9) TMI 740 - ITAT MUMBAI - TMI - Determination 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 whi .....

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er, 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 compare .....

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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. - I.T.A. No. 7339/Mum/2011, I.T. A. No. 7340/Mum/2011 - Dated:- 19-8-2015 - SHRI G. S. PANNU AND SHRI SANJAY GARG, JJ. For The Appellant : Shri S. P. Walimbe For The Respondent : Shri Prakash Jotwani, ORDER PER G.S. PANNU, AM: These two captioned respondent assessees are co-owners of a property and the only issue i .....

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ppellate order dated 10/08/2011 passed by CIT(A)-41, Mumbai pertaining to the assessment year 2008- 09, with reference to the assessment order dated 16/11/2010, passed in terms of section 143(3) of the Income Tax Act,1961 ( in short the Act ). 3. Briefly put the relevant facts are that assessee is owning 3/4th share in Flat No.151/152 at Maker Tower L , Cuffe Parade, Mumbai 400 005, which was rented out to one M/s. Robo India Finance Pvt. Ltd. for an yearly rent of ₹ 1,80,000/-. On the bas .....

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suring 1700 sq. Fts., whereas Flat No.151/152 owned by the assessee was of 3060 sq. Fts. By adopting the rentals earned by Mr. Puneet R. Gupta, the Assessing Officer concluded that the flat owned by the assessee ought to have fetched a rental of ₹ 5,40,000/- per month, which according to him was the Annual Value of the property liable to be considered for assessment of assessee s income under the head Income from house property . On the aforesaid , the Assessing Officer worked out the Annu .....

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gned addition, in as much as the action of the Assessing Officer was in violation of the provisions of section 23(1) of the Act. The assessee pointed out that as per provisions of section 23(1) of the Act, for the purposes of determination of Annual Value, the sum for which the property might reasonably be expected to be let from year to year or actual rent received, whichever is higher is to be considered. The assessee pointed out that the annual ratable value determined by the local Municipal .....

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d also the judgment of Hon ble Bombay High Court in the case of Smt. Smitha Ben N. Ambani, 323 ITR 104(Bom), 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. Against the deletion of addition by the CIT(A), Revenue is in appeal before us. 5. Before us the o .....

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ive for the assessee supported the order of CIT(A) by pointing out that the decisions of the Mumbai Bench of the Tribunal in the cases of Sahar Developers(supra) and Sandeep J. Sha(supra) relied upon by CIT(A) continue to hold the field. Apart therefrom, Ld. Representative for the assessee also referred to the decision of the Tribunal in the case one Shri Manish Ranbir Maker vide ITA No.7341/Mum/2011 & ITA No.4405/Mum/2012 for assessment years 2008-09 and 2009-10 order dated 30/8/2013 to poi .....

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8377; 3.00 lacs per month and found that the same could not be considered as a rent for which the property can be reasonably expected to be let out from year to year for the purposes of section 23(1) of the Act. 7. In the above background, we have considered the rival submissions. The precedents which have been referred by CIT(A) and also the decision of the Tribunal in the case of Shri Manish Ranbir Maker (supra) clearly support the Annual Value of the property as determined by the assessee in .....

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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 .....

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