TMI Blog1996 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... was right in holding that the annual letting value of the property at No. 35-A, Mount Road, should be taken on the basis of actual rent received and not on the basis of the value fixed by the Corporation of Madras ?" In the assessment year 1977-78, the assessee, an individual, deriving income from house property, money-lending and other sources, was assessed by the Income-tax Officer by computing the property income adopting the annual letting value at the municipal valuation of Rs. 68,578 instead of the actual rental receipt of Rs. 51,150 adopted by the assessee. On appeal, the Appellate Assistant Commissioner accepted the assessee's contention that the annual actual rental value of Rs. 51,150 should be adopted. The aggrieved Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the matter of determining the annual rental value. We have heard learned standing counsel for the Department and perused the records carefully. The actual rent received by the assessee was Rs. 51,150 and the annual letting value determined by the Corporation was Rs. 68,578. In the matter of determining the annual letting value, we are guided by the decision of the Supreme Court in Dewan Daulat Rai Kapoor's case [1980] 122 ITR 700, wherein the Supreme Court has held as under : " The actual rent payable by a tenant to the landlord would, in normal circumstances, afford reliable evidence of what the landlord might reasonably expect to get from a hypothetical tenant, unless the rent is inflated or depressed by ' reason of extraneous c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Under section 100 thereof, there is no rule for determining the annual letting value on the basis of the value of the land and the building. Therefore, in view of the abovesaid two decisions of the Supreme Court, it is not possible to accept the contention put forward by the Department that the annual letting value as fixed by the municipality, should be accepted. There is also no evidence on record to show that the rent received by the assessee is low because of any extraneous considerations, like relationship between the landlord and the tenant or any other contract. In the absence of such evidence, we are not in a position to reject the conclusion arrived at by the Tribunal that the actual rent received by the assessee would form the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
