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Issues involved: Determination of Annual Letting Value (ALV) for house property income for Assessment Years 2004-05 and 2005-06.
Summary: 1. The appellant, engaged in manufacturing and trading of industrial gas plant and gases, filed returns declaring total income. The Assessing Officer (AO) observed discrepancies in ALV for previous years and asked for explanation. The AO adopted a higher ALV, resulting in increased income assessment. 2. On appeal, the CIT(A) noted that the rent charged by the appellant from its sister concern was significantly lower compared to the rent received by the sister concern from sub-letting. The CIT(A) determined ALV based on this information, rejecting the appellant's claim for a lower ALV. 3. The appellant contended that the ALV should be determined based on actual rent received by the assessee, citing previous Tribunal orders. The Department supported the CIT(A)'s decision. 4. The Tribunal found that the ALV determined by the CIT(A) was unjustified, as the facts were similar to previous years where a lower ALV was accepted. The Tribunal directed the AO to adopt the lower ALV as claimed by the appellant. 5. Grounds related to the validity of the assessment order and levy of interest were also considered. The Tribunal rejected the ground related to the assessment order but partially allowed relief regarding the levy of interest. 6. For the Assessment Year 2005-06, the Tribunal directed the AO to follow the findings for the previous year, as no distinguishing features were presented by either party. 7. Ultimately, the Tribunal partly allowed the appellant's appeals, with the order pronounced on 20.4.2010.
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