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TMI Blog2016 (3) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... is let- (a) And the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in section 23(1)(a), the amount so received or receivable (section 23(1)(b) or If the aforesaid provision of the Act is kept in juxtaposition with the facts of the present appeal, undisputedly, the assessee received rent of 5,89,600/- from M/s West Coast Construction Pvt. Ltd. in respect of property no. 51 and 52, which are of the same size and located in the same building, thus, the receipt of actual rent is not in dispute, therefore, we find no infirmity in the conclusion drawn by the ld. Commissioner of Income Tax (Appeals). - Decided against assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee declared income of ₹ 95,43,660/- in his return filed on 31/07/2008. The assessee is an individual, showed salary income, income from house property, long term capital gain and income from other sources. The assessee for the year under consideration, in its computation of income also declared rental income of ₹ 5,89,600/- for M/s West Coast Construction Pvt. Ltd. On asking by the ld. Assessing Officer, the assessee furnished the written submissions, which were considered by the Assessing Officer. The assessee at the relevant time was owner of property no.31 and 32 at sterling CHS Ltd., which was let out to Sidharth Patel and Kalpana Patel for annual license fee of ₹ 42,300/-. Simultaneously, the assessee also received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the purposes of section 22, the annual value of any property shall be deemed to be- (a) the sum for which the property might reasonably be expected to let from year to year; or (b) where the property or any part of the property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a), the amount so received or receivable; or (c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the sum referred to in clause (a), the amount so received or receivable : Provided that the taxes l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the assessee may, at his option, specify in this behalf; (b) the annual value of the house or houses, other than the house in respect of which the assessee has exercised an option under clause (a), shall be determined under sub-section (1) as if such house or houses had been let. The operative words in section 23(1)(a) are that "the sum for which the property might reasonably be expected to let out from year to year." These provide specific direction to the Revenue authorities for determining the "fair rent". In the present appeal, the actual rent received by the assessee (as per assessee's calculation itself) to the tune of ₹ 5,89,600/-, thus, as per the provisions itself, there is no infirmity in the conclusion of the ld. Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dly, in the present appeal, the assessee received the amount of ₹ 5,89,600/- from flats no.51 & 52 as rent from M/s West Coast Construction Pvt. Ltd. 2.5. So far as, the contention of the assessee that the property income may be considered as a whole and not from individual point of view, is concerned, we find that the provision of section 23 has been explained with the insertion of Explanation-1, which means (a) in case, where the property is let out throughout the previous year, the actual rent received or receivable by the owner in respect of such years and (b) in any other case, the amount which bears the same proportion to the amount of the actual rent received or receivable by the owner for the period for which the property is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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