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TMI Blog2013 (11) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities below and material available on record. 3. The facts in brief are that the assessee is owner of a plot admeasuring 1614 sq. ft at A-25, Sector 16, NOIDA, the cost of which is being shown by the assesee at Rs. 22,53,291/- under the head "investment" in its balance sheet. The said plot was allotted to the assesee by the NOIDA authorities. On field enquiries directed by the AO, the inspector reported that the area of the plot is above 1000 sq. yards and the assessee has constructed a built-up shed of approximately 40 ft. x 60 ft. on the same alongwith another kuchcha shed and boundary wall on all four sides of the plot of approximately 6-7 ft. high with big steel gate. The said property was lying vacant and a guard was appointed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the present appeal before the Tribunal. 4. In support of the appeal the Ld. AR submitted that section 22 of the Act is not applicable in the present case, hence there is no question of application of section 23 of the Act in the present case. He submitted that section 22 is applicable to the owner and the assessee is not an absolute beneficial owner but is only a limited owner of the plot of land allotted by NOIDA. He submitted that assessee has entered with a lease deed with NOIDA authority for the said plot of land. In this regard, he referred page Nos. 11 to 15 of the paper book i.e. copy of the lease deed. He drew our attention to the contents of page No. 13 to 14 of the Paper Book where different relevant clauses to the lease deed h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 of the Act that the assessee has occupied the said property for the purpose of business carried on by him, profits of which are chargeable to tax. 6. Without prejudice to the above submission the Ld. AR submitted further that if at all the provisions of section 22 are made applicable to the assessee, the assessee claims that the rent determined by AO is on the basis of inspector's report which is arbitrary and uncalled for. He submitted that ALV in the case of the assessee can be determined as per provisions of section 23 (1)(a) as per which the sum for which the property might reasonably be expected to let from year to year. He submitted that as per the restriction imposed in the lease deed the assessee cannot sub let the property hen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar properties as that of assessee in the vicinity and taking into account the restriction imposed on the assessee in the lease deed for sub letting etc. 7. Ld. DR on the other hand tried to justify the orders of the authorities below. 8. As per the above submissions and orders of the authorities below, the first issue before us is as to whether the property of the assessee qualify the requirement of the provisions laid down u/s 22 of the Act under the category of "income from house property"? For a ready reference contents of section 22 of the Act are being reproduced hereunder :- "22. The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideocon as it is also apparent from clauses III(i) of lease deed, copy of which has been made available at page No. 13 of the paper book. For a ready reference the same is being reproduced hereunder :- "CLAUSE III (i) of Lease Deed placed at Page 13 of Paper Booklet That the lessee shall not at any time carry on or permit to be carried on upon the demised premises any trade or business whatsoever or time or permit the same to be used for any purpose other than the manufacture of color television receiver set of boxes Videocon without the consent in writing of the Lessor first had and obtained." 10. Thus it is an admitted fact that the property in question occupied by the assessee was for the purpose of business carried on by him. The cos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. Now the further question is as to whether the rental rate adopted at Rs. 40 per sq. ft. per month on the basis of the report of the inspector is reasonable or not. On going through the report of the inspector dated 29.11.2010 we find that it was informed that the prevailing rental rate in the locality (A-25, Sector -16, Noida ) was around Rs. 60/- per sq. ft. and the rates during the financial year 2007-08 were approximately Rs. 40/- per sq. ft. The AO has not considered the contention of the assessee that the property could not be let out without prior permission of NOIDA authority that too for the agreed purpose of manufacturing color television receiver set of boxes Videocon and that water and electricity connections were not availab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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