TMI Blog1994 (1) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case, the Tribunal was justified in law in holding that the gross annual letting value was correctly computed at Rs. 18,000 per annum ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that agreed rent of Rs. 500 per month was not standard rent on the ground that the same was nominal rent and whether the said finding is duly supported by material and evidence on record ?" The relevant assessment years are 1973-74, 1974-75 and 1975-76. The trustees of Shri Bipinchandra Vadilal Family Trust No. 1 were assessed as representative assessees in the status of an association of persons. The dispute relates to determination of the annual value of the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imity of the period for which gross annual value had to be determined to the date of the gift deed made on March 29, 1971, by Bipinbhai in favour of the trustees in which the capital value of the property was mentioned at Rs. 2,15,000, the Appellate Assistant Commissioner came to the conclusion that the gross annual value of Rs. 18,000 as determined by the Income-tax Officer was reasonable. The appeals were, therefore, dismissed. In further appeals before the Tribunal, the Tribunal found that rent of Rs. 500 per month which was said to be charged from Suhas Vadilal, brother of the settlor, was only a nominal rent having regard to the value of the property shown as Rs. 2,15,000 in the gift deed. The Tribunal found that an annual interest o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the trustees so as to form part of the initially settled trust property. Admittedly, the value of the said property was shown therein as Rs. 2,15,000. It appears that immediately thereafter, the property was let out on April 1, 1971, to the brother of the settlor, one Suhas Vadilal, for a sum of Rs. 500 per month. Admittedly, no lease deed or rent deed was executed in that connection. According to the assessee, on the basis of the rent agreed to be paid by Suhas Vadilal, the annual letting value of the property could be computed at Rs. 6,000 only. It has been found by the Tribunal that the agreed rent of Rs. 500 was just one-third of the expected monthly rent of Rs. 1,500. There are various factors which affect the rental of prem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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