9911796707
TMI Blog1981 (1) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... alue declared by the assessee was supported by an approved valuer's report. It is common ground that the house property aforesaid is wholly let out to tenants and is subject to the Delhi Rent Control Act, 1958. The gross annual rent received by the assessee was Rs. 2697. After allowing admissible deductions on account of property tax, repairs, collection charges, etc. The net annual letting value was determined at Rs. 2,023. The assessee's valuer applied a multiple of 12 and determined market value by rent capitalisation method at Rs. 25,138. He added reversionary value of Rs. 12,610 and value of the Unutilised potential of land measuring 400 sq. yds. at Rs. 26, 203. In this manner, the total market value determined by the assessee's approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case was to determine the value by rent capitalisation method. In support of this submission, reliance was placed on the following decisions of the various High Courts: CIT West Bengal vs. Smt. Ashima Sinha (Cal.) (1979) 116 ITR 26 (Cal) Subhkaran Chowdhury vs. IAC of Income-tax (Cal) (1979) 118 ITR 777 (Cal), CIT vs. M.S. Gujral (P&H) (1980) 125 ITR 655 (P&H) CIT vs. New India Construction Co. (1980) 17 CTR (Del) 223 : (1980) 123 ITR 68 (Del). He further submitted that the net annual letting value of the property was accepted even by the Department Valuer at Rs. 2,328.54 P. The dispute, it was submitted, was only in regard to the multiple to be applied to the said net annual letting value. In his submission, a multiple of 12 applied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see should succeed on its contentions. We enquired in the course of hearing and were informed that the property including the land is wholly let out and is in the possession of the tenants for the last about 25 years. The so-called unutilised portion of land forms part of the tenanted premises. In other words, the land in question is appurtenant to the tenanted house property and forms part and parcel of the leased portions of the property. The entire tenanted property is subject to the Delhi Rent Control Act, 1958 and neither the rent can be enhanced and nor can the tenants be evicted from this property except in accordance with the provisions of the Rent Control Act. In this connection the Delhi High Court has held as follows in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 on the basis of the report of the Asstt. Valuation Officer for that year. It is also to be borne in mind that in determining the value by rent capitalisation method the so-called reversionary value and the value of any unutilised portion are not to be taken into account. 11. The argument of the Department that there has been a upward trend in the value of the land and cost of construction does not appear to be of any assistance to them for the reason that the property in question being wholly let-out and subject to Rent Control Act, its rent cannot be enhanced by the landlord except in accordance with the provisions of the Rent Control Act. 12. If we determine the value of this property by rent capitalisation method and exclude the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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