TMI Blog2003 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... and daughter should be taken as the annual value - - - - - Dated:- 4-4-2003 - Judge(s) : R. JAYASIMHA BABU., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessee owns a building known as "Nataraj building" which consists of ground floor, first floor and second floor with vacant space for parking cars situate at Dr. Nanjappa Road (Jail Road), Coimbatore. The building was constructed in the year 1981 by the assessee. Immediately after its completion, a lease deed was entered into between the assessee and the firm, Lakshmi Co., consisting of the wife and daughter of karta of the assessee Hindu undivided family and a trusted employee of the kartha as partners, under which the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The Assessing Officer took note of the amount of rental actually received by the firm, Laskhmi Co., in which the wife and the daughter of the kartha of the assessee-Hindu undivided family are partners. The rent of Rs. 3,61,864 received by the firm was included as the attributed income of the assessee. The rent received by the assessee for the year from the firm, Lakshmi Co. was Rs. 75,000. The amount which the assessee claims to be assessable as income from property was thus less than one-fourth of the amount of rent that the property was capable of yielding, and did yield. That order of the Assessing Officer was affirmed by the Commissioner and the assessee was unsuccessful in persuading the Tribunal to reverse the order of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akshmi and Co. does not make any difference, having regard to the fact that the other parties to the lease agreement are the wife, daughter and a trusted employee of the kartha of the assessee. Learned counsel for the assessee submitted that the burden is heavy upon the Revenue to show that the actual rent received by the assessee is not the assessable value. Counsel in this context referred to the decision of the Supreme Court in the case of S. G. Mercantile Corporation Pvt. Ltd. v. CIT [1972] 83 ITR 700, wherein it was held that when the Revenue seeks to contend that the apparent state of affairs is not the real, the burden is on the Revenue to establish the same. Learned counsel also relied on the following decisions: The case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Act. Reliance was also placed on the decision of this court in the case of C.H. Kesava Rao v. CIT [1985] 156 ITR 369, wherein it was found that the lease granted by the assessee to his wife could not be taken as the basis for determining the annual value and that the higher figure determined by the Assessing Officer as the reasonable rate of rent was upheld. In this case, the assessee has not placed before the court any material to show as to what the standard rent is. What was contended by the assessee was that the annual value as far as the assessee was concerned was the actual rent received by the assessee and no more. When the documents placed before the Assessing Officer clearly showed that the letting effected by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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