1981 (7) TMI 93 - AT - Income Tax

Summary

Issues:
1. Computation of Annual Letting Value of property based on actual rent received versus standard rent.
2. Applicability of Bombay Rent, Hotel and Lodging Houses Rates Control Act.
3. Validity of Municipal Corporation's valuation versus actual rent received.
4. Preclusion from agitating the same point before the ITO based on previous CIT's decision.
5. Competency of CIT to entertain appeals for specific assessment years.

Detailed Analysis:
1. The appeals involved a common issue of determining the Annual Letting Value of a property based on actual rent received. The assessee computed the value using the actual rent received, while the Municipality calculated it based on rent received by a specific tenant at a higher rate. The dispute centered around whether the standard rent under the Rent Control Act should be considered, as per the decision in Dewan Daulat Rai Kapoor vs. New Delhi Municipal Committee.

2. The contention revolved around the applicability of the Bombay Rent, Hotel and Lodging Houses Rates Control Act, which the Department argued had expired and was not relevant. However, the assessee maintained that the Act was still in force, supporting their argument with relevant legal precedents.

3. The validity of the Municipal Corporation's valuation method was challenged, with the Department arguing that the higher rent received by a specific tenant should be considered. The assessee, on the other hand, emphasized that the actual rent received should be the basis for calculation, citing legal authorities to support their position.

4. The Department contended that the assessee was precluded from raising the same issue before the ITO based on a previous decision by the CIT. However, the assessee argued that they were not precluded from raising the issue during reassessment, especially when supported by legal precedents.

5. The competency of the CIT to entertain appeals for specific assessment years was questioned by the Department. The assessee argued that the CIT's decision was binding and should be followed during reassessment, as per the law laid down by the Supreme Court.

The tribunal upheld the order of the AAC for all five years, dismissing the appeals based on the sound reasoning and legal authority presented by the assessee. The decision was made considering the applicability of the Rent Control Act, the validity of Municipal Corporation's valuation, and the preclusion from raising the issue based on previous decisions.