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TMI Blog2012 (5) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... f convenience. 2. Ground No.1 in both the appeals is against the CI(A)'s upholding the action of the AO in treating the sums being long term capital gains arising on exercise of rights under ESOP, as "perquisites" and taxed the same in the computation of income under the head "salaries". Ground is identical except the figure of amount mentioned therein. 3. Facts in brief are that the assessee was an employee of Pfizer India Ltd. During the course of assessment proceedings, the Assessing Officer noticed that the assessee had received rights under Stock Option Grant from the parent company of Pfizer India Ltd., viz; Pfizer Inc, USA being the grantor of rights under Stock Option Grant. Pursuant to the said rights, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground taken by the assessee in both the assessment years. 5. Ground No.1 in both the assessment years is thus dismissed. 6. In Ground No.2 in both the appeals, the assessee is aggrieved the CIT(A)'s upholding the action of the AO in calculating Annual Ratable Values (ALV) of three house properties for the purpose of computing "income from house property" on estimated basis. 7. The brief facts are that the assessee owned six flats, as under: Sr.No. Description Carpet area (Sq.ft) No of rooms Date of purchase Whether given on hire 1. 71, Sector, 9, chandigarh 600 5 BHK 4.2.2000 No (SOP) 2. 194, Sector 6, Panchkula 16. sq.mt. 1 BHK and garage 11.12.75 NO 3. EG1/19, Garden Estate, Gurgoan 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintenance, the Assessing officer estimated the annual value at Rs.4,71,670. and added under the head "income from house property". 9. On appeal, it was submitted that the annual letting value for calculating notional income was accepted by the department in all the earlier years. Further, since these houses were purchased long ago, no certificates regarding municipal value are available from Municipal authorities. Reliance was placed on the decision of the Mumbai Bench of the Tribunal delivered on 31.05.2007 in the case of Premsudha Exports Pvt. Ltd. vs. ACIT in ITA Nos: 6277 and 6278/Mum/2006. The assessee contended that provisions of section 23(1)(c) would apply in assessee's case. In view of this, the assessee prayed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . DCIT (ITA Nos: 4177 and 4178/Mum/1999) dated 13.01.2004, it was held that the standard rent determinable under the provisions of the rent legislation should be taken as the annual letting value of the property. This order of the Tribunal has been confirmed by the order of the Hon'ble Bombay High Court dated 26.09.2007 in Income Tax Appeal No: 831 of 2004. A similar order was passed by the Mumbai Bench of the Tribunal in the case of JCIT vs. M/s Shapoorji and Co. (Rajkot) Pvt. Ltd. (ITA No: 40/Mum/1999) on 17.09.2003. In this order the Tribunal referred to its earlier order dated 29.07.2003 for the assessment year 1994-95 in that assessee's case and held that in Mumbai it is the annual rateable value as fixed by the Municipal Corporation A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the cost of construction of the building. The assessee has furnished the certificates given by the Brihanmumbai Mahanagarpalika showing the rateable value of the flats and these certificates were enclosed to the return of income. The calculation of the assessee was based on these certificates. In the light of these certificates the Assessing Officer was not justified in redetermining the annual letting value of the flats on the basis of the Times of India property chart. We accordingly uphold the assessee's contentions and direct the Assessing Officer to accept the income returned by the assessee in respect of Capri and Kodinar. The ground is allowed. 12. The matter is accordingly restored to the file of the Assessing Officer f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Further, FTI and its advisor manages these assets to ensure safety of capital, appreciation and dividend and income earnings. Hence, it was stated that management fees are expenses incurred in connection with earning of income generated out of managing assets, i.e. portfolio of shares, securities, etc. It was also stated that the copy of the mandate of account opening from FTI account shows that the bank at its discretion may change the nature and composition particularly by selling or purchasing securities, currencies and/or precious metal. After considering the assessee's submission, the AO came to the conclusion that the fee is in the form of annual holding fees for the purpose of holding of the assets. It was in this backdrop that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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