TMI Blog2006 (10) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... erred the two questions of law under section 27(l) of the Wealth-tax Act, 1957, hereinafter referred to as "the Act" for opinion to this court "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally correct in allowing deduction of one-sixth for repairs and 6 per cent. for collection charges for working out the net annual letting value of the property ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in holding that the reversionary value of the land does not enter into picture where the value of a property is determined by capitalising the net annual letting value of the property ?" 2 The present reference relates to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Departmental Valuation Cell under section 16A of the Act and on the basis of his reports determined the value of the aforesaid properties for all the three years as under: Property No.1 1974-75 1975-76 1975-76 Rs 3,67,000 Rs 3,67,000 Rs. 3,72300 Property No.2 1973-74 1974-75 1975-76 Rs. 6,62,400 Rs. 6,62,400 Rs. 6,64,300 Property No.3 1973-74 1974-75 1975-76 Rs. 11,07,300 Rs. 11,07,300 Rs. 12,70,700 Property No.4 1973-74 1974-75 1975-76 Rs 1,89,100 Rs. 1,89,100 Rs 2,21,800 Property No.5 1973-74 1974-75 1975-76 Rs. 3,23,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the three properties as under Property No1. Property No 2 Property No 3 1973-74 11975-76 11973-74 1973-74 1974-75 1975-76 1973-74 1974-75 1975-76 Rs. 2,60,000 Rs. 2,83,000 Rs. 2,83,000 Rs. 4,75,000 Rs. 5,18,720 Rs. 5,18,720 Rs. 2,50,000 Rs. 2,50,000 Rs. 2,50,000 The Department being aggrieved filed appeals against the order of the Appellate Assistant Commissioner before the Appellate Tribunal. The ate Tribunal held that the deduction of one-sixth for repairs and 6 Per cent for collection of rent was rightly allowed by the Appellate Assistant for working out the net annual letting value of the in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one-sixth and 6 per cent., respectively as has been laid down in the Income-tax Act. Such deductions, according to learned counsel for the assessee, Mr. Pandey, have been approved in the decision of the Calcutta High Court in CIT v. Smt. Ashima Sinha [1979] 116 ITR 26. We, after deliberation, agree with the assessee in this behalf. Under the Income-tax Act, 1961, it is laid down that in determining the income to be notionally taxed under the head 'Income from proper the deductions to be allowed on account of repairs and collections charges stand at one-sixth and up to 6 per cent, respectively. Further, on going through the decision of the Calcutta High Court in the case of Smt. Ashima Sinha [1979] 116 ITR 26 we find that in working out the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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