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TMI Blog2013 (12) TMI 1386X X X X Extracts X X X X X X X X Extracts X X X X ..... nflated/deflated the rental income by reason of any extraneous consideration - Decided against Revenue. - ITA No. 5888/Mum/2011, ITA No. 6953/Mum/2010 - - - Dated:- 27-11-2013 - Shri P. M. Jagtap And Dr. S. T. M. Pavalan,JJ. For the Petitioner : Shri R. Murlidhar For the Respondent : Shri Pitambar Das ORDER Per Dr. S. T. M. Pavalan, JM: These appeals filed by the Revenue are directed against the orders of the Ld.CIT(A)-23, Mumbai, both dated 26.07.2010 for the Assessment Years 2007-08 2008- 09. Since identical issues are involved in both the appeals, the same are disposed off by this common order. 2. The only issue raised by the Revenue in both the appeals relate to the decision of the Ld.CIT(A) as to the determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore us, the Ld.DR has contended that if the rateable value is not properly determined by the municipal authorities, the said value is not binding on the AO and the AO can determine the ALV u/s 23(1)(a) by taking the fair market rent on the basis of comparable properties let out in the same locality. The Ld.DR has further relied on the judgment of the Delhi High Court in the case of CIT Vs. Moni Kumar Subba reported in 333 ITR 38 (Delhi) (FB) to substantiate the said contention. The Ld.DR has further stated that the said decision, being a Full Bench decision of the High Court, the same supersedes all other decisions of the Tribunal including other decisions of various High Courts on the issue and hence the Ld.CIT(A) is not correct in follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l value of the property provided the same is higher than the sum for which the property might reasonably be expected to let from year to year. The legislative intention of the said amendment has been explained by the CBDT in Circular No.204 dated 24-7-1976 and after taking note of the said circular, the Tribunal held that the position of law prior to introduction of section 23(1) (b) as clarified by the Board itself is that the annual value is equal to the municipal valuation of the property. The Tribunal held that this is how the Board sought to interpret the expression "the sum for which the property might reasonably be expected to let from year to year" used in section 23(1)(a). The same proposition is supported by various decisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h and every case by ignoring the rateable value determined by the municipal authorities rather in the cases where there is any doubt/suspicion as to the quantum of actual rent claimed by the assessee or the same does not seem otherwise justified in the normal circumstances. However, where actual rent claimed is justified in the normal circumstances which is supported by actual document such as lease and license agreement and also in the absence of any higher rent received by the assessee than that claimed by the assessee, in our view, the question of assessment by resorting to fair market value by ignoring the rateable value does not arise. Having noted that the actual rent declared by the assessee (Rs.30,000/- per month) is more or less te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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