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Smt. Rameti Devi Jain Versus Income-tax Officer –12 (3) (2) , Aayakar Bhavan, Mumbai

2012 (4) TMI 727 - ITAT MUMBAI

Annual Letting Value of the properties u/s.23 - Held that:- A.O. was not justified in estimating the ALV of those flats in both the assessment orders on arbitrary basis. Accordingly, direct the A.O. to adopt standard rent as determined as per the Maharashtra Rent Control Act, 1999 if available or latest valuation made by the local authority Brahanmumbai Municipal Corporation (BMC) for the payment of the property tax whichever is higher, as ALV to be determined u/s.23(1)(a) of the Act in both the .....

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(a) and in view of clause (b) to sec.23(1) actual rent received is to be adopted. In the present case, actual rent received by the assessee is more than the municipal rateable value and in view of clause (b) to sec.23(1) the A.O. has rightly adopted the said value. Accordingly, confirm the order of the Ld. CIT (A) on one flat at EL-DORDO Mumbai and dismiss ground no.3 for A.Y. 2005-06. - ITA Nos. 3269 and 3268 /Mum/2011 - Dated:- 25-4-2012 - SHRI R.S. PADVEKAR, JUDICIAL MEMBER Appellant by: Shri .....

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ts is having total area of 39.90 sq. meters each and the assessee has declared ₹ 882/- per flat as annual letting value (ALV) by adopting municipal rateable value. As observed by the A.O. the said flats are not self-occupied by the assessee. The A.O. rejected the annual valuation declared by the assessee and he estimated ALV of those two flats at ₹ 60,000/- per annum by estimating the rent at ₹ 2,500/- per month. The A.O. also allowed the deduction @ 30% u/s.24 of the Act and d .....

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i.e. @ ₹ 46,000/- from April to July 2004 (by adopting ₹ 11,500/-) by considering the actual rent received by the assessee. The A.O. allowed the deduction at 30% u/s.24. 5. In the A.Y. 2006-07 the only issue is in respect of the two flats in the Green Field situate at Jogeshwari, Vikroli Link Road, Mumbai - 400 093. The A.O. estimated the ALV of the said flats at ₹ 48,000/- and also the deduction u/s.24 and estimated the net ALV at ₹ 33,600/-. 6. I have heard the parties. .....

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the ALV u/s.23(1)(a) the standard rent under the applicable Rent Control Act should be considered. If the local authority for the purpose of the house tax has determined the value then that should be adopted. It is pertinent to note here that in the case of Shiela Kaushik (supra) the Hon ble Supreme Court has considered the amended sec.23 of the Act. I, therefore, hold that the A.O. was not justified in estimating the ALV of those flats in both the assessment orders on arbitrary basis. I, accord .....

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