2021 (2) TMI 532 - AT - Income Tax

Income from house property - determination of ALV on the basis of Municipal Rateable Value - HELD THAT - As decided in own case 2018 (12) TMI 1681 - ITAT MUMBAI wherein upheld the determination of ALV on the basis of Municipal Rateable Value. Tribunal in all the earlier years is that municipal rateable value was to be taken as Annual Rental Value. Nothing is on record to demonstrate that the any of the aforesaid adjudication has subsequently been reversed in any manner. Therefore, the distinction of facts as made by Ld. CIT(A) was not to be accepted. Respectfully following the consistent view of Tribunal in earlier years in assessee s own case, we direct Ld. AO to adopt the MRV as Annual Letting Value. The ground, thus raised, stand allowed.

Summary

Issues:
Determination of Annual Rental Value (ARV) of certain flats held by the assessee during the year.

Analysis:
The appeal contested the order of the Ld. Commissioner of Income Tax (Appeals) regarding the Annual Letting Value (ALV) of the premises owned by the appellant at Central Garden Complex, Mumbai. The appellant offered ALV based on municipal rateable value, while the Ld. AO calculated ALV differently. The Ld. CIT(A) confirmed the AO's order, leading to the appeal. The key issue was the determination of ALV for the vacant flats owned by the assessee.

The material facts revealed that the assessee owned 19 flats, with 7 vacant and the rest let out. The AO calculated ALV based on the rate at which the let-out flats were rented, differing from the appellant's approach. The appellant cited favorable decisions from previous years, but the Ld. CIT(A) upheld the AO's calculation due to the change in circumstances. The appeal was then brought before the Tribunal for further adjudication.

The Tribunal considered past decisions and the legal framework, emphasizing the importance of municipal rateable value in determining ALV. Citing relevant cases and High Court decisions, the Tribunal upheld the Ld. CIT(A)'s decision to calculate ALV based on municipal rateable value. The consistent view of the Tribunal in previous years supported this conclusion, leading to the dismissal of the appeal filed by the Revenue. The Tribunal directed the Ld. AO to adopt the Municipal Rateable Value as the Annual Letting Value, in line with previous judgments.

In conclusion, the Tribunal partly allowed the appeal by upholding the Ld. CIT(A)'s decision on the determination of ALV. The consistent legal interpretation and past judgments supported the reliance on municipal rateable value for calculating ALV, leading to the dismissal of the Revenue's appeal. The Tribunal's decision was based on legal precedents and the specific circumstances of the case, ensuring a fair and consistent application of the law.