9911796707
TMI Blog2013 (12) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... present case is a company which is engaged in the business of investment and finance brokerage. During the years under consideration, it had let out a house property at Nariman Point, Mumbai, to M/s Bank of Novascotia on a monthly rent of Rs. 15,000/- per month. It had also accepted the interest free deposit of Rs. 2,75,00,000/- from the tenant. Relying on the provisions of section 23(1)(a) of the I.T. Act, the annual value of the property was estimated by the AO at Rs. 1,80,000/- on account of rent actually received plus Rs. 27,50,000/- being notional interest at 10% on the interest free deposit of Rs. 2,75,00,000/- taken by the assessee from the tenant. Accordingly the ALV of the assessee property was worked out by the AO at Rs. 29,30,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee for the years under consideration at Rs. 90,000/- per month i.e. at Rs. 10,80,000/- and directed the AO to adopt the same as ALV of the assessee's property subject to further deduction on account of municipal taxes and standard deduction of 30%. Still aggrieved by the orders of CIT (A), the assessee has preferred these appeals before the Tribunal. 4. We have heard the arguments of both sides and also perused the material on record. It is observed that an identical issue involving the similar facts has been decided by the co-ordinate bench of Tribunal in the case of ITO Vs. M/s Tip Top Typography vide its order recently passed on 27th November 2013 in ITA Nos. 5888/Mum/2011 and 6953/Mum2010. In the said order, the Tribunal after con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the interest free deposit, which the Court has held as not permissible. In this context, the High Court in the said decision has observed that the annual value fixed by the Municipal Authorities can be a rationale yardstick. However, it would be subject to the condition that the annual value fixed bears a close proximity with the assessment year in question in respect of which the assessment is to be made under the income-tax laws. If there is a change in circumstances because of passage of time, viz.,the rateable value fixed by the Municipal Authorities is much earlier in point of time on the basis of rent than received, this may not provide a safe yardstick if in the assessment year in question when assessment is to be made under Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f comparable properties let out in the localities by ignoring the rateable value fixed by the municipal authorities for arriving at the ALV. In view of the aforementioned discussion, we do not find any justifiable reason to interfere with the decision of the Ld.CIT(A) directing the AO to accept the actual rent declared/claimed/received as the income from house property as the same is higher than the municipal value and the same is upheld. 5. As held by the Tribunal in the case of M/s Tip Top Typography (supra), when the actual rent declared by the assessee is more than the ratable value fixed by the municipal authorities, there is no reason to disbelieve the actual rent declared by the assessee and it is not warranted on the part of the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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