TMI Blog2019 (6) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... ration. As regards the property at sl. no.2 if the ALV of the property shown by the assessee is more than the ratable value fixed by the Municipal Corporation, then it has to be accepted. AO has determined the ALV purely on estimate basis without being backed by any material - That being the case, the Assessing Officer is directed to verify the ALV shown by the assessee in respect of properties at sr. no.3 and 5 and if it is found that the ALV shown by the assessee is as per the ratable value of Municipal Corporation or more than that, then it has to be accepted. Otherwise, the Assessing Officer is directed to determine the ALV of these properties as per the ratable value of Municipal Corporation. As regards property at sr. no.4 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es held and rental income shown from each property. After verifying the details furnished by the assessee, the Assessing Officer called upon the assessee to explain why the properties, other than one self occupied property, should not be assessed as deemed let out properties as per section 23(1) of the Act. After considering the submissions of the assessee, the Assessing Officer observed, in respect of some of the properties the assessee has either not offered any rental income or offered rental income lower than the market rate on the reasoning that they are not let out. Thus, he proceeded to determine the ALV of such properties on the basis of market rate. As against the ALV of house properties shown by the assessee at ₹. 55,16,461/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing officer did not properly appreciate the fact that in respect of flat no. 11 B the assessee had received security deposit of ₹. 70 lac as against security deposit of ₹. 1 lac against the other flat. In respect of flat at Jolly Market the Learned Authorised Representative submitted, this flat was also not rented out but was used as residence by assessee s daughter. Therefore, the assessee had shown notional rent of ₹. 69,060/ . He submitted, the ALV determined by the Assessing Officer is not on the basis of Municipal Corporation rate. As regards the flat at Perin Nariman Street, Fort, the Learned Authorised Representative submitted, the flat was used as staff quarter. Therefore, assessee did not offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Departmental Authorities: Description ALV as per Assessing Officer (₹ .) ALV as per Appellant (₹ .) As per Commissioner of Income Tax (A) (₹ .) 1. Flat no. 10 F Harbour Heights. 9,54,000 69.6060 4,77,000 2. Flat no. 11 B Harbour Heights. 12,88,536 7,33,200 12,88,536 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdictional High Court, clearly support this view. Therefore, the Assessing Officer is directed to verify whether the ALV shown by the assessee is as per ratable value determined by the Municipal Corporation and if it is not so, the Assessing Officer is directed to determine the ALV on the basis of ratable value of Municipal Corporation. 5. As regards the property at sl. no.2 of the table, the Assessing Officer determined the ALV on the basis of the rent at which another flat in the same building was let out. Pertinently, it is the contention of the assessee that the reason for showing ALV at a lesser value than the ALV of the other flat is because, while in respect of subject property the assessee has received security d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty at sr. no.4 of the Table, the ALV has been shown by the assessee as nil. The learned Authorised Representative submitted, since the property was used by the staff of the assessee, the ALV has been shown as nil. We are unable to accept the aforesaid contention of the learned Authorised Representative. Undisputedly, the assessee is the owner of the property. Therefore, the ALV has to be determined under section 23(1)(a) of the Act. Having held so, we must observe, the Assessing Officer has determined the ALV of the property at ₹ 12 lakh purely on estimate basis. This action of the Assessing Officer cannot be supported in view of the decisions relied upon by the learned Authorised Representative. Therefore, we direct the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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