2009 (8) TMI 1164 - HC - Income Tax

Summary

Issues involved: Determination of annual rateable value for property tax, computation of income from house property under different sections of the Act.

Issue 1: Determination of annual rateable value for property tax
The Tribunal remanded the matter to the assessing officer to decide the annual rateable value based on municipal authorities' assessment and actual rent received by the assessee. However, the assessing officer maintained the same view, leading to an appeal to the Tribunal. The Tribunal upheld the assessing officer's decision, which was deemed to exceed the scope of the initial remand order.

Issue 2: Computation of income from house property under different sections of the Act
The Tribunal failed to consider relevant judgments, including those of M.V. Sonawala v/s. CIT and CIT v/s. J.K. Investors (Bombay) Ltd. The Tribunal was also not apprised of the order in CIT v/s. Akshay Textiles Trading & Agencies P. Ltd. Due to inconsistencies in the orders, the impugned order was set aside, and the matter was remanded to the assessing officer for reconsideration in light of the aforementioned judgments. The calculation of annual rateable value was to be based on the value determined by the municipal authorities, with other legal interpretations left open.

Separate Judgement:
In Income Tax Appeal Nos.759 of 2008 and 866 of 2008, the impugned order was set aside based on the reasons outlined in Income Tax Appeal No.758 of 2008, and the matter was remanded to the assessing officer for further action.

All the petitions were disposed of accordingly, with no order as to costs.