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TMI Blog2017 (12) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the respective parties. Both the parties did not raise any serious objection to the respective pleas. Accordingly, delays in both cases are condoned and appeals are admitted. 3. Both the appeals relate to an issue regarding assessment of annual rent of a property belonging to the assessee located at North Beach Road, Chennai. Assessee had originally filed her return of income for the impugned assessment year disclosing income of Rs. 31,74,020/-. In the statement of income filed alongwith return, assessee had shown rentals from two properties one at Cathedral Road and another at North Beach Road, both in Chennai. Annual rent from the Cathedral Road building was shown as Rs. 33,15,006/- against which Municipal tax of Rs. 1,51,522/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Portion 2 Portion 3 212176 476440 231067 38682 78036 41120 14852 33350 15120 53534 111386 56240 Total 919683 157838 63322 221160 1/3rd share of the above 306561 52613 21107 73720 Contention of the assessee was that income from house property had to be worked out in accordance with Sections 23 & 24 of the Income Tax Act, 1961 (in short ''the Act''). As per the assessee the data relevant for such computation was as under:- Particulars Municipal Valuation P.A. Rent receivable Higher of the above Actual rent Vacancy allowance Gross annual value Portion 1 212176 210000 212176 192489 17511 194665 Portion 2 476440 280920 476440 23409 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 11,51,172/- against Rs. 23,97,830/- considered in the assessment. 6. Now before me, assessee is aggrieved on the methodology adopted for fixing the annual value of her property at North Beach Road. According to her annual value shown in the return of income was correct. As against this, Revenue is aggrieved that ld. Commissioner of Income Tax (Appeals) directed application on multiplication factor 21.88 times on Municipal tax component of Rs. 52,613/- alone ignoring the Metro Water tax Rs. 21,107/- and arrears of 735,869/-. 7. Ld. Counsel for the assessee submitted that the methodology adopted by the lower authorities for fixing the annual value of the North Beach Road was unknown to the law. According to him, just because one prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 levied by any local authority in respect of the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (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 bad been let''. The method in which annual value is to be determined is clearly set out on the above section. No doubt, Multiplication valuation can be a pointer as to the reasonable rental that can be fetched for a given property. However, in my opinion, a multiplication factor derived from one set of data for a given property, cannot be applied blindly to another property located at a different place, even though, both are in the same city. The methodology followed by the lower authorities was in my opinion entirely unscientif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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