TMI Blog2014 (12) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... ed property is valued under rule 1BB of the Wealth-tax Rules and municipal ratable value is arrived at under the municipal law is the same i.e. “a reasonable amount of rent that can be expected by the owner from a hypothetical tenant”. That while arriving at such reasonable amount of rent that can be expected by the owner from a hypothetical tenant, the amount of statutory deduction, if any, permi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of CIT(A), dated 4-5-2012 for the Assessment Year 2009-2010, in the matter of order passed u/s.143(3) of the I.T. Act, wherein following grounds have been taken by assessee :- 1.1 The learned Commissioner of Income-tax (Appeals)-21, Mumbai[ the ld.CIT(A) ] erred in confirming the action of the Asst. Commissioner of Income tax-10(2), Mumbai [ the AO ] in holding that the Standard Rent or Mun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y three times of the stamp duty valuation). The A.O. asked assessee as to why income from II SOP u/s.23(4) was not offered for taxation. The assessee explained to the A.O. that where a person has two or more than two houses the annual value u/s.23(2) shall be taken to be Nil only in respect of anyone house of his choice and the annual value of the remaining house used for self occupation by the ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and notional taxable income in respect of 2nd property at ₹ 11,144/-. The AO held that standard rate of municipal valuation was not applicable while determining annual value u/s.23(1)(a). Accordingly, the assessed the letting value u/s.23(1)(a) at ₹ 3 lakhs per annum. 3. By the impugned order, the CIT(A) confirmed the action of the AO. 4. Against the above order of CIT(A), asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court held that while applying the provisions of rule 1BB for valuing the self-occupied property, municipal rateable value with addition of statutory deductions, if any, may be adopted instead of standard rent, for arriving at the gross maintainable rent. Respectfully following the order of jurisdictional High Court, matter is restored back to the file of AO with a direction to recompute the AL ..... X X X X Extracts X X X X X X X X Extracts X X X X
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