TMI Blog1983 (1) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... 1970-71, as against the annual value of Rs. 12,000, returned by the assessee. The assessee appealed and the AAC following the Tribunal's order for the preceding year adopted the monthly letting value of the property at Rs. 1,800 and this was confirmed in appeal by the Tribunal. Aggrieved by the order of the Tribunal, the assessee sought for and obtained a reference of the following questions of law to this court for its opinion : Question for decision in T.C. No. 1352 of 1977 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in fixing the bona fide letting value at Rs. 1,800 per month as against Rs. 1,000 per month, as per the lease deed ? 2. Whether, on the facts and in the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, which works out to Rs. 1,800 per month. Having regard to the fact that on the other methods referred to by the ITO, the rental value was high, the annual letting value determined by the Tribunal appears to be very much in favour of the assessee. We have, therefore, to agree with the finding of the Tribunal that the letting value of the building is Rs. 1,800 per month. Coming to the other question, it is seen that the assessee claims the benefit of reduction under the second proviso to s. 23(1) of the I.T. Act. We have already found that the letting value of the entire building is Rs. 1,800 per month. It is not in dispute that the building has been used as a lodging house and there are 36 rooms therein. The case of the assessee is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are to be satisfied for claiming the benefit under the second proviso thereto, one is that the building should consist of more than one residential unit and the other is that every residential unit should be such that its annual value is capable of being separately assessed. In this case, as already stated, the building has been assessed by the corporation as a single unit. Only if the residential units are separately assessed to annual value, the question of application of second proviso to s. 23(1.) will arise. The said proviso also indicates that the reduction of sum of Rs. 600 is from the annual value of the residential unit and not from the annual value of the building. In this case as there is no separate annual value for each room, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and (b) of the proviso to s. 23(1) would take within their ambit only buildings comprising plurality of dwelling units like flats, which by themselves would constitute houses or homes, and that each such dwelling unit would ordinarily be a separate house in itself with its own electricity meter and water supply connection, and that sub-cls. (i) and (ii) of the proviso also furnished a clear indication that in order to constitute a residential unit for the purposes of the section, it must have a separate annual value. We have, therefore, to agree with the view of the Tribunal that the assessee is not entitled to claim the benefits of the second proviso to s. 23(1) of the I.T. Act treating each of the rooms in the building as a separate r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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