9911796707
TMI Blog2016 (11) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... asized was that holding the aforesaid properties and earning income by letting out properties was the “main object of the company”. The above facts in Chennai Properties & Investments Ltd (supra) clearly distinguishes it in its applicability to the facts of the present case where a categorical stand was recorded in para 5 of the judgment of CIT v. Ansal Housing Finance & Leasing Co. Ltd. (2012 (11) TMI 323 - DELHI HIGH COURT) that letting out of properties “was not part of business and object of the Assessee”. Consequently, this Court is not persuaded to accept the plea of the Assessee that in view of the decision in Chennai Properties & Investments Ltd (supra) the Court should reconsider the correctness of its ruling in CIT v. Ansal Housin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax v. Ansal Housing Finance & Leasing Co. Ltd. (2013) 354 ITR 180 (Del). 3. As far as question A is concerned, an attempt has been made by learned counsel for the Assessee to urge that in view of the judgment of Supreme Court in Chennai Properties & Investments Ltd v. CIT 373 ITR 673 (SC), the decision of this Court in CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra) requires to be reconsidered. 4. In the first place it requires to be noticed that the same question squarely arose before this Court in CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra). In para 5 of the said judgment the Court noted the submissions of the learned counsel for the Assessee that " letting out of vacant or other properties was not part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not sanctioned by law, in the opinion of the Court is meritless. ALV is a method to arrive at a figure on the basis of which the impost is to be effectuated. The existence of an artificial method itself would not mean that levy is impermissible. Parliament has resorted to several other presumptive methods, for the purpose of calculation of income and collection of tax. Furthermore, application of ALV to determine the tax is regardless of whether actual income is received; it is premised on what constitutes a reasonable letting value, if the property were to be leased out in the marketplace. If the assessee's contention were to be accepted, the levy of income tax on unoccupied houses and flats would be impermissible - which is clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the security of lands or buildings or other property, or any interest therein". What was emphasized was that holding the aforesaid properties and earning income by letting out properties was the "main object of the company". The above facts in Chennai Properties & Investments Ltd (supra) clearly distinguishes it in its applicability to the facts of the present case where a categorical stand was recorded in para 5 of the judgment of CIT v. Ansal Housing Finance & Leasing Co. Ltd. (supra) that letting out of properties "was not part of business and object of the Assessee". 9. Consequently, this Court is not persuaded to accept the plea of the Assessee that in view of the decision in Chennai Properties & Investments Ltd (supra) the Court sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
