9911796707
|
Home
Issues involved: Determination of annual letting value of property u/s 23(1) of the Income-tax Act, 1961 based on actual rent received versus municipal valuation.
Summary: In the assessment year 1977-78, the assessee's property income was assessed by the Income-tax Officer using the municipal valuation instead of the actual rental receipt. The Appellate Assistant Commissioner accepted the actual rental value, but the Department appealed to the Tribunal. The Tribunal, citing relevant case laws, upheld the actual rent received by the assessee as the fair rent. The Department argued that the municipal valuation should be considered u/s 23 of the Income-tax Act. However, the High Court, guided by Supreme Court decisions, emphasized that fair rent should be determined based on rent control legislation where applicable. As the municipal valuation did not follow the rent control legislation, and no evidence showed the rent was low due to extraneous factors, the High Court upheld the Tribunal's decision to consider the actual rent received as the fair rent. The question was answered in the affirmative, with no costs incurred.
|
