TMI Blog1991 (11) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... Road, Bombay-26 with an approximate area of 2211 sq. ft. (hereinafter called the premises). 3. The assessee has given this premises to M/s. J. K. Synthetics Ltd., a company registered under the Companies Act, 1913 and having its registered office at Kamla Tower, Kanpur on licence to use and occupy the said premises, together with the fixtures and fittings, on the terms and conditions contained vide Lease and Licence Agreement executed by the parties. The agreed consideration for the user of premises with fixtures and fittings as per the Agreement is payable on monthly basis. Besides, the Agreement contains stipulation for advance deposit also. 4. The assessee filed one certificate from Shri R. J. Sethna, Engineer, Chartered Surveyor, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letting out the property. Therefore, upheld the order of the assessing officer. 6. Shri Y.P. Trivedi, the learned counsel for the assessee, appeared before us. A copy of the Agreement and certificate from R..J. Sethna was also filed by the learned counsel. Shri Trivedi contended that the assessee did not receive rent within the meaning of section 23(1)(b), therefore, actual compensation cannot be taxed. The income should have been estimated on the basis of sec. 23(1)(a). As per the certificate filed, standard rent of the premises is Rs. 54,000 only. In these circumstances, revenue authorities should have taken only standard rent into consideration. To support this proposition, Shri Trivedi, relied on the ratio laid down by the Apex court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed cannot be taken into consideration, as the property was not let out. Its possession was divested on the leave and licence basis. Besides, what assessee realised was not the rent but the compensation for the user of the premises. 9. See. 23(1)(a) provides that for the purposes of sec. 22, the annual value of any property shall be deemed to be the sum for which the property might reasonably be expected to 'let' from year to year. The word 'let' appears in sec. 23(1)(b) also. The word 'reasonably' in sec. 23(1)(a) is very important. What the owner might reasonably be expected to get from a hypothetical tenant, if the premises were let from year to year, affords the statutory yardstick for determining the annual value. Though the word 're ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licensee company is influenced by the extraneous circumstances. 12. The expression "total income" in sec. 4 has to be understood as it is defined in sec. 2(45). Under that definition total income means "the total amount of income referred to in sec. 5, computed in the manner laid down in this Act", that is, computed for the purpose of chargeability, under appropriate sections, from sections 15 to 59. If particular receipt cannot be brought to tax under any of these sections, they will not be included in the "total income" as that word is understood in the Act for the purpose of chargeability. For instance, the main computing sec. of "Income from house property" is sec. 22 which says that tax shall be payable on income under this head in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word 'let' as per the Concise Oxford Dictionary connotes "Grant use of (rooms, land, etc.) for rent or hire". Admittedly the assessee has granted the user of the premises for the agreed amount payable on monthly basis. 14. Having regard to the facts and circumstances of the case and after carefully considering the case in its proper perspective, we are inclined to agree with the finding given by the learned CIT (Appeals) that the licence to use and occupy the premises with the fixtures and fittings is nothing but the "letting out" of the property. In this view of the matter we uphold the order of the learned Commissioner of Income-tax (Appeals). In the result, all the appeals by the assessee stand dismissed - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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