TMI Blog1986 (10) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ided with a free use of a car. The salary of Rs. 300 per month to a driver was also reimbursed by the company. For the asst. yr. 1979-80 the question was similar as a car was used by the assessee for office as well as for personal purposes. He accordingly asked the assessee to explain as to why the value of perquisite on motor car and reimbursement of driver salary should not be added as per r. 3(c). The ITO also asked the assessee whether the maintenance of the car was met by the company or by the assessee. The assessee submitted that the running expenses of the car was incurred by the company but he denied personal use of the car. The ITO pointed out that for the asst. yr. 1979-80 this issue was decided by the AAC in his order dt. 31st de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g used for both private and official use. The AAC declined to interfere with this part of the order of the ITO. 4. The claim of the Revenue in the present appeal is regarding the direction of the AAC to allow full deduction under s. 16(1). We have heard the ld. Departmental Representative at length, who highlighted the points raised by the ITO while disagreeing with the findings and arguments advanced in the impugned order. It is pointed out that on the facts of the case the deduction allowed by the ITO was justified under the above proviso. The assessee's the ld. Counsel, on the other hand, supports the order of the AAC. Reference was made to earlier year, assessment order and appellate order copy of which has been placed before us for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 9,000. The ITO pointed out that building consisted of three storeys of which the first floor was let out and the second and third are occupied by the assessee. The municipal authorities estimated the standard monthly rent of self occupied portion as well as let out portion of Rs. 500 each in respect of the self occupied portion after giving deduction of 1/2 of the letting value the net ALV has been taken at Rs. 1,000 and in respect of the let out portion the value has been taken at Rs. 6,000. Thus the value of Rs. 9000 was worked out. The ITO pointed out that the ALV of the self occupied portion should be at Rs. 6,000 as against Rs. 3,000 shown by the assessee. That apart, he noted that the actual rent of Rs. 10,800 in respect of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee as in his view the accommodation in the first floor cannot be compared with that of the ground floor for arriving at the annual value. So also the facilities and convenience attached to the ground floor. He also pointed out that the Rent Control Act puts a limit on the rent and, therefore, he directed the ITO that the ALV of the first floor should be taken to be more as prescribed in ALV by the Municipal Corporation, which was only Rs. 250 per month. Hence this appeal by the Revenue. 7. It is argued vehemently by the learned Departmental Representative that the AAC went wrong in mis-appreciating the fact of the case, vis-a-vis, the provisions of IT Act as well as Municipal Corporation Act. IT is also submitted that, as po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... papers placed in the paper-book in support of his contention. 9. We have heard the parties at length and we have perused the orders of the authorities below along with the other papers placed before us for out consideration. We have also gone through the provisions of s. 23(1) and the relevant clauses. As held in the case of P.D. Singhania municipal valuation is not the safe guide particularly in the instant case the assessee, as pointed out by the ITO had received more rent from the lower portion than the one determined by the municipal authorities as ALV. In fact, the ITO pointed out the allowances of the assessee's argument that the assessee cannot increase the rent more than one determined by the municipality under the Rent Control ..... X X X X Extracts X X X X X X X X Extracts X X X X
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