1980 (4) TMI 163 - AT - Income Tax

Summary

The appeal was by the assessee for the assessment year 1977-78 regarding the Annual Letting Value (ALV) of a flat in Bombay. The Income Tax Officer (ITO) estimated the ALV at Rs. 2,000 per month, but the assessee argued it should be Rs. 1,000 based on evidence. The Appellate Tribunal agreed with the assessee, stating that no cogent material was provided by the Revenue to support the higher estimate. The Tribunal also disagreed with the Additional Commissioner of Income Tax (AAC) on estimating household expenses at Rs. 6,000, as the assessee's disclosed amount of Rs. 2,147 was considered reasonable based on past history. Therefore, the appeal was allowed.