9911796707
TMI Blog1983 (1) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. The Alwarpet property was let out to another subsidiary company Messrs Addison Paints and Chemicals at Rs. 9,000 per annum, whereas the annual letting value determined by the Corporation of Madras was only Rs. 8,190. In the return filed for the asst. yr. 1977-78 corresponding to the previous year ended 30th June 1976 the assessee showed the income from the Adyar property at Rs. 6,000 being the actual rent received and computed the income by claiming usual deductions. With regard to the Alwarpet property the assessee returned the income at Rs. 15,000 as assessed for the preceding assessment year and claimed the usual deductions for computing the income from that property. The assessment was made by following the procedure prescribed u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide as an appellate power that a review on the same facts was possible unless it could be shown that some relevant facts have been ignored or that some irrelevant facts have been taken into consideration especially when there was no allegation that the assessments were made in haste or made without any enquiry. On the other hand, the contention of the revenue is that the power u/s. 263 having been conferred in the lieu of a right of appeal by the revenue against the order of the ITO, it was wide enough to consider an assessment to be erroneous where it was patently prejudicial in the sense that on the same facts income could have been determined in such a manner as to yield a higher amount of tax. It was also submitted that the ITO having r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the principles of law applicable to the determination from property. Sec. 23 states that the annual value of the property shall be deemed to be : (a) the sum for which the property might reasonably be expected to let from year to year; or (b) where the property is let and the annual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in cl. (a) the amount so received or receivable. In the present case the ITO has taken the actual rent received in the case of Adyar property which is in conformity with the section and in the case of Alwarpet property the amount taken is even larger than the actual rent received, which again is larger than the annual letting value determined by the Corporation an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edge that is the knowledge of persons having been in the locality and having an intelligent concern with the local affairs which should be taken into consideration in the determination of the value. It may be possible to say that general increase in the rent is a notorious fact which cannot be ignored, but at the same time, it will not be possible to ignore the other relevant fact that wherever the property is tenanted the rents are pegged by legislation. Therefore the question whether the rent in Adyar or Alwarpet had increased between 1972 and 1977 and to what extent and whether it could have affected the property already tenanted would not be matters of judicial notice but of evidence to be let in. Again if it is to be considered as a ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Act also property tax is levied on the annual letting value, which has to be determined as the sum for which property might reasonably be expected to let from year to year. This is the same phrase which appears in s. 23. It is not possible to say that the corporation authorities have not properly made the determination under the provisions of that Act and proceeded on the basis that the real annual letting value could be much higher. Under Art. 261 of the Constitution of India full faith and credit shall be given to all public acts. In the circumstances it could not be said that the ITO was in any way acting erroneous in proceeding on the basis that the annual letting value determined by the corporation reflected the correct state o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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