9911796707
TMI Blog1980 (6) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee was not given any opportunity by the ITO to state his objections before making this addition and that the ITO had not stated any reasons in support of the same. In his remand report the ITO requested the AAC to enhance the income from property including s.o.p. to Rs. 68,827 from Rs. 37,650 determined by the ITO in the asstt. Order. 2. The AAC, however, did not agree with this request of the ITO. The AAC referred to the remand report of the ITO and the Valuation report of the Distt. Valuation Officer and also to his inspection of the property in question, and held that the ALV as made out by the Distt. Valuation Officer was highly exaggerated and unrealistic considering the realities of the situation. The AAC pointed out that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent would be much more than the proportion to be determine under s. 23(3) of the Act. We, therefore, directed the ITO to accept the income from self-occupation property as returned in the place of Rs. 22,306 computed by him. 3. The Revenue feels aggrieved by this order of the AAC and hence the present appeal on t he following ground. "On the facts and in the circumstances of the case, the learned AAC has erred in restoring the income form House Property as returned by the assessee and in rejecting the estimate of income form House Property submitted by the ITO in his remand report". 4. Shri R.C. Khiwani for the Revenue relied on the remand report of the ITO at pages 12 13 of the paper book filed by the respondent and contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered the rival submissions of parties in the light of the materials contained in the paper book filed by the assessee's ld. counsel. 7. There is no dispute that the "Rajmahal Palace" was recognised as one of the residential palaces of the former Rulers of Jaipur that three-fourths of this palace was in the occupation of the assessee's father for his residence during this year and that the remaining one-fourth portion was kept by the assessee for his own residence. The assessment order shows that the ITO had accepted the property income of Rs. 15,345 as returned by the assessee and that this income included Rs. 12,000 shown by the assessee as the amount received from his father for the portion occupied by him in this palace, as would be cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be exercised in a judicial manner in a proper case and not according to the arbitrary whims and fancies of the ITO. 8. We are also of the view that the AAC was right in accepting the assessee's contention regarding the determination of the ALV for the self-occupied property at Rs. 6,000 when the ITO had accepted in the assessment order Rs. 12,000 as fair and reasonable ALV for the 3/4th portion of the property in the occupation of the assessee's father, the ALV of Rs. 6,000 for the 1/4th portion in self occupation of the assessee as declared in his return cannot be considered to be either unreasonable or low, particularly when the assessee may be entitled to the benefit of s. 23(3)(b) of Act, though he does not seem to have made any s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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