TMI Blog2018 (8) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... rcise to determine the Municipal Rateable Value of the said property. Thus, he could not have come to the conclusion that the amount received/ receivable by the Assessee under Section 23(1)(b) of the Act is in excess of fair rent. - Decided against the Revenue. Appeal admitted on the substantial question of law at (b) Whether on the facts and in circumstances of the case and in law, the Tribunal was justified in holding that society maintenance charges are to be excluded from ALV u/s. 23(1) (b) without appreciating the fact that the actual rent received/ receivable is independent of such charges and that the only deduction allowable under the Act is per section 24? - Income Tax Appeal No.1326 of 2015 With Income Tax Appeal No.1316 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal was justified in holding that society maintenance charges are to be excluded from ALV u/s. 23(1) (b) without appreciating the fact that the actual rent received/ receivable is independent of such charges and that the only deduction allowable under the Act is per section 24? 3 Re. Question (a) : (i) As it is evident from the question, the issue relates to adding of notional interest on the interest free security deposit received by the RespondentAssessee from its licensee to the rent received. This to determine the Annual Letting Value (ALV) of the property in terms of Section 23(1)(b) of the Act. (ii) It is an undisputed position before the authorities that the property being let out on leave and license, is not covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ateable Value can be ignored. (v) In the present facts, it is not the case of the Revenue that fixing of the rent was inflated/ deflated on extraneous consideration. Parties to the Agreement are at Arms Length. Therefore, the Municipal Rateable Value can be taken as a safe guide to determine the fair rent of the property. (vi) In the present facts, the Assessing Officer has not carried out necessary exercise to determine the Municipal Rateable Value of the said property. Thus, he could not have come to the conclusion that the amount received/ receivable by the Assessee under Section 23(1)(b) of the Act is in excess of fair rent. (vii) In the Tip Top Typography (supra), our Court, while dealing with Section 23(1)(a) of the Act, held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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