TMI Blog2018 (1) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... of actual rent of ₹ 70,000/-. Accordingly, the annual letting value should be determined u/s. 23(1)c) of the IT Act. Restore the matter back to the file of the AO for deciding afresh as per law after giving due opportunity to the assessee. Appeal of the assessee is allowed for statistical purposes. - ITA No.5736/Mum/2017 - - - Dated:- 18-1-2018 - SHRI R. C. SHARMA, AM For The Assessee : Shri Dalpat Shah For The Revenue : Shri Ram Tiwari ORDER PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)- 51, Mumbai dated 21/06/2017 for A.Y.2012-13 in the matter of order passed u/s.143(3) of the IT Act. 2. Following grounds have been taken by the assessee:- 1. Addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of provisions of 23(1)(c). 4. Facts in brief are that assessee had let out only part of office at Crystal Plaza on casual basis to a contractor for the repairing and renovation of the neighboring office owner. The said contractor used only a part of the said premises and therefore, no agreement was entered into. The said contractor paid a sum of ₹ 70,000/- as a compensation for use of the said premises. The assessee offered the said sum of ₹ 70,000/- under the head Income from house Property However, AO assessed rent income under the head Income from House Property at ₹ 7,92,000/- (being deemed rent of ₹ 33,000/- p.m.) as against the actual casual rent received of ₹ 70,000/- during the short period , wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or which the house might reasonably be expected to be let from year to year. It may be that in areas which are governed by the rent control legislation, the reasonable letting value cannot exceed the standard rent, but on considering the statutory definition of the term 'standard rent in rent control legislation and the mode and manner of calculating municipal ratable value, situations can be countenanced where the standard rent of a given premises might be more or different than the sum for which a house might reasonably be expected to be let from year-to-year as calculated by the local municipal authority for the purpose of arriving at the municipal ratable value. The basis on which a self-occupied property is valued unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Bombay High Court, in the case of V. Sonavala v. CIT [1989] 177 ITR 246 have held that for the purpose of lutation on the basis of 'rent for which property might be reasonably let out, under section 23(1)(a), municipal valuation is to be taken into account. The actual rent being realized by similar property cannot have, in this context, any bearing. The stand of the CIT(A) is thus correct and does not call for any interference. 9. On the other hand, learned DR relied on the order of the lower authorities and contended that AO has correctly computed rental income under provisions of Section 23(1)(a) of the IT Act. 10. I have considered rival contentions and carefully gone through the orders of the authorities below and also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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