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TMI Blog2014 (9) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... e same - If the standard rent has not been fixed under the Rent Control Legislation by the competent authority, it is the duty of the AO to determine the same in terms of the Rent Control Legislation – there was no basis for an apprehension that the Tribunal would ignore the Rent Control Legislation and prefer some other mode in determining the fair rent or annual letting value of the property u/s 23(1)(a) - the principle cannot be any different for self-occupied properties and in relation to which the exercise must be carried out in terms of the relevant section 23(1) of the I.T. Act – Decided in favour of assessee. - Income Tax Reference No.513 of 1997, Income Tax Reference No.43 of 2013, Income Tax Reference No.44 of 2000 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total cost to arrive at the gross annual letting value of the property at ₹ 59,900/-. The Commissioner of Income Tax i.e. the first appellate authority upheld this basis and the income. Thereafter, the matter was carried to the Tribunal and it was held that the standard rent determined on the basis of 10% yield could not be said to be excessive. The assessee's appeal and particularly the ground in that behalf was dismissed. 4. The assessee, therefore, requested the Tribunal to refer the above question. 5. What we find is the order of Reference is dated 26th July, 1994. Prior to that order being passed by the Tribunal, there was in field a decision of the Division Bench in the case ofM.V.Sonawala V/s. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Rent Control Legislation applicable to the property. (v) if standard rent has not been fixed by the Rent Controller, then it is the duty of the assessing officer to determine the standard rent as per the provisions of rent control enactment. (vi) The standard rent is the upper limit, if the fair rent is less than the standard rent, then it is the fair rent which shall be taken as ALV and not the standard rent. We would like to remark that still the question remains as to how to determine the reasonable / fair rent. It has been indicated by the Supreme Court that extraneous circumstances may inflate / deflate the fair rent . The question would, therefore, be as to what would be circumstances which can be taken into considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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