TMI Blog2021 (1) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... Kumar Subba [ 2014 (8) TMI 356 - BOMBAY HIGH COURT] and held Annual Letting Value (ALV) of the property could not exceed Standard Rent as per the Rent Control Legislation as applicable to the property and the Standard Rent is the upper limit. ALV of the property has to be determined at sum at which property might reasonably be let out between willing parties. Methodology as adopted by Ld. AO to estimate the income @8% of value of the property is not in accordance with the above principles laid down by Hon'ble Court and therefore, the same could not be sustained. Nothing has been brought on record by Ld. AO that the aforesaid estimation was the approximate sum between willing parties. The assessee offered the rent on the basis of Mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents, the bench formed an opinion that the assessee successfully established reasonable cause in late filing of appeal and therefore, the delay is condoned and we proceed to adjudicate the appeal on merits. 3. We have carefully heard the rival submissions and perused relevant material on record including documents placed in the paper-book. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 4.1. The assessee being resident individual was assessed for year under consideration u/s. 143(3) wherein returned income of ₹ 356.20 Lacs e-filed by the assessee on 30/09/2013 was assessed at ₹ 357.71 Lacs after certain additions/disallowances. The addition of ₹ 1.50 Lacs as made und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of Municipal Valuation was correct approach as held in various judicial decisions. 6. So far as the factual matrix is concerned, the same is not under dispute. It is evident that the assessee has offered the deemed rental value on the basis of Municipal Valuation. The property has not been let out, at all, during the year. As per the provisions of Sec. 23(1)(a), the annual value of such property shall be deemed to the sum for which the property might reasonably be expected to be let out from year to year. 7. The Hon'ble Bombay High Court, in the case of CIT V/s. Tip Top Typography (2014 368 ITR 330) concurred with following principles laid down by full bench of Hon'ble Delhi High Court in the case of CIT V/s. Mani Kumar Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es laid down by Hon'ble Court and therefore, the same could not be sustained. Nothing has been brought on record by Ld. AO that the aforesaid estimation was the approximate sum between willing parties. The assessee, on the other hand, has offered the rent on the basis of Municipal Valuation which is in accordance with the principle laid down by Hon'ble Court as above. Therefore, the estimation thus made and confirmed by lower authorities could not be sustained. We direct Ld. AO to adopt the ALV of the property at ₹ 8,400/-, being deemed rental value based on municipal valuation of the property. 8. The appeal stand allowed in terms of our above order. Order pronounced on 14th January, 2021. - - TaxTMI - TMITax - Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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