TMI Blog2019 (3) TMI 1869X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. DCIT [ 2015 (7) TMI 1253 - ITAT MUMBAI ] has held that the ALV of the property has to be computed as per municipal ratable value as deemed income from the house property. The said decision of the co-ordinate bench of the Tribunal was affirmed by the Hon ble Bombay High Court in the case of Pr. CIT vs. Harsh Jain [ 2019 (2) TMI 537 - BOMBAY HIGH COURT ] where the appeal of the Revenue was dismissed. We are of the view that the ALV of the vacant flat has to be determined on the basis of municipal ratable value for the purpose of assessing the income under the head house property . Accordingly, we are inclined to allow the appeal filed by the assessee and dismiss the appeal of the Revenue - ITA Nos.3893 & 3844, 3663 & 3664/M/2017, ITA No.445, 685/M/2018 - - - Dated:- 22-3-2019 - SHRI RAJESH KUMAR AND SHRI RAM LAL NEGI, JJ. Appellant by: Shri Anuj Kisnadwala, A.R. Respondent by: Shri D.G. Pansari, D.R. ORDER Rajesh Kumar, J. The above titled cross appeals have been preferred against the orders even dated 27.02.2017 relevant to assessment years 2011-12 2012-13 and order dated 15.09.2017 for assessment year 2013-14 of the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt dated 23.12.2010 on the basis of which the rental of ₹ 42 per sq. ft. was taken by the AO and the ALV was worked out for the flat at ₹ 1,61,57,124/- in A.Y. 2009-10. The AO proposed the same basis to be taken in the A.Y. 2010-11 subject to normal increase of 10% in the rental value. The Ld. A.R. of the assessee objected to the increase @ 10% in the rental value on the ground that this is just an estimation of rent and increase may not be possible in every year. However, without prejudice admitted that the amount adopted in A.Y. 2009-10, 2010-11 and 2011-12 may be adopted in A.Y. 2012-13. The AO also referred to the rental rates as per various websites in the nearby areas for the month of March 2015 and calculated the average rate @ ₹ 51 during the financial year 2014-15. Besides, the inspector of Income Tax also conducted a field enquiry and filed a report dated 13.03.2015 which is reproduced at page No.6 of the assessment order. The AO on the basis of average rate by various websites and inspector s report calculated the ALV for A.Y. 2014-15 at ₹ 56 per sq. ft. by treating the same as most reliable and then did backward calculation to determine the renta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anced by 1 /9th of said value, and the resultant value will be the ALV of these properties for the relevant assessment year. Respectfully following the same it is held that the ALV of the flats/properties under considerations need to be determined accordingly. Since my Ld. predecessor has determined the Annual rateable value of Flats at Central Garden Complex for A.Y. 2010-11 at ₹ 17,03,3697-, so for the relevant assessment year the same need to be increased by 10% (annual 5% increase) and thereby works out be ₹ 18,73,7067-. The said rateable value for the financial year 2011-12 need to be further increased by 179th of said value to arrive at the ALV of F.Y. 2011-12 which is relevant to assessment year under consideration. The Ld. AO is directed to substitute the ALV of said flats at ₹ 18,73,706/- (as enhanced by 1791h of said value) as against ₹ 2,77,17,3607-considered by him in the impugned order. The Ld. AO is directed to re-compute the income form house property as per above directions. Hence, the Ground No. 2 raised in appeal is PARTLY ALLOWED, as indicated above. 7. The Ld. A.R., at the outset, submitted before the Bench that the issue involved i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scertainment of ALV where the flat was vacant during the year. In the case of DCIT vs. Laxmi Jain in ITA No.2118/M/2012 A.Y. 2009-10 the co-ordinate bench of the Tribunal by following the decision of Hon ble Jurisdictional High Court in the case of Smitaben N. Ambani vs. CWT, 323 ITR 104 High Court held that the ALV of the vacant flat has to be made on the basis of municipal ratable value and thus dismissed the appeal of the Revenue. The said decision of the Tribunal was affirmed by the Hon ble Bombay High Court in the case of Pr. CIT vs. Laxmi Jain vide order dated 16.04.2018 on the ground that there is no substantial question of law arising from the Revenue s appeal. In the case of Harsh Jain vs. DCIT in ITA No.2710/M/2013 A.Y. 2009-10, the coordinate bench of the Tribunal has held that the ALV of the property has to be computed as per municipal ratable value as deemed income from the house property. The said decision of the co-ordinate bench of the Tribunal was affirmed by the Hon ble Bombay High Court in the case of Pr. CIT vs. Harsh Jain vide order dated 05.02.2019 where the appeal of the Revenue was dismissed. 11. After taking into account, the facts of the case and the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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