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TMI Blog2018 (1) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant's case. On the facts of the present case, the conditions precedent to resort to enquiry or adoption of the prevailing rateable value are absent. In view of the same, and in considered opinion, the rent actually received by the appellant shall be taken to be the actual rent for tax purposes. - Decided against revenue. - ITA No. 4525/Mum/2017 - - - Dated:- 18-1-2018 - Shri R. C. Sharma, AM Revenue by : Ms. N. Hemalatha Assessee by : None ORDER Per R. C. Sharma ( A. M ) This is an appeal filed by the Revenue against the order of CIT(A)-2, Mumbai dated 17/03/2017 for A.Y.2010-11 in the matter of orderpassed u/s.143(3) of the Act. 2. Grievance of revenue relates to deletion of estimation of rent made by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so made after observing as under:- 3.4 The facts of the case, the stand taken by the AO in the assessment order and the contentions raised by the learned authorized representative of the appellant during the appellate proceedings as well as the written submissions made are carefully considered. In the previous years, in the assessee's own case, an identical issue has also been examined by the Hon'ble ITAT vide order Nos.2162, 2163, 2164, 2165 and 2166/Mum/2009 dated 18.11.2011 for the A. Yrs. 1999-2000,2000-01,2001-02, 2002-03 and 2005-06 respectively. Relying upon the decision of the Full Bench of the Hon'ble Delhi High Court in the case of CIT -vs- Moni Kumar Subba [333 ITR 38], the Hon'ble ITAT, Mumbai Bench has in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO has to make enquiry as to what would be the possible rent that the property might fetch. It was held that the AO can ignore the municipal valuation for determining the ALV if he finds that the same is not based on relevant material for determining the fair rent in the market and there is sufficient material on record for taking a different valuation. In the present case, although such relevant material in the form of comparable instances of rent in the similar locality was collected by the AO by making the enquiries, he proceeded to adopt the fair rent of assessee's property at ₹ 2,50,000/- per month by taking into consideration mainly the notional interest on the interest free deposit which, in our opinion, was not in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2005-06 is concerned, it is observed that the learned C/T (Appeals), however, has taken a different stand by directing the AO to determine theALVofthe assessee's property on the basis of rent ofKs. 15,000/~ per month actually received. As already held by us while disposing of the Revenue's appeals for assessment years 1999-2000 to 2002-03, the ALV of the asessee 's property was correctly determined by the learned CJT (Appeals) by taking fair rent of ₹ 28,000/- per month on the basis of material gathered by the AO in the form of comparable instances of rent received for the similar property in the same locality. Following our decision rendered in assessment years 1999-2000 to 2002-03, we modify the impugned order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecide the Annual Letting Value. In all these cases, the parties have fairly brought to our notice a judgment of this Court - - - in Commissioner of Income Tax-12, Mumbai vs.Tip Top Typography Tax Appeal No. 1213 of 2011andconnected appeals] decided on 8thAugust, 2014, One of us (S.C.Dharmadhikari, J,) is a party to this judgment. We have followed the ratio of the Pull Bench of the Delhi High Court in the above case and respectfully concurred with it. In such circumstances and when he revenue was unable to produce any material so as to challenge the determination made by the parties, the approach of the Commissioner of Income tax and the Tribunal and to determine the annual letting value on the basis of valuation of Municipal Corporation c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties are not indicative of the fair or market rent. The Annual Letting value has to be determined and decided only in such cases where there is established fraudf collusion or an attempt is made by the parties to inflate or deflate the rent because of relationship or such other consideration, otherwise the determination of the rent or fees between the less or and the lessee cannot be said to be influenced by any exigencies aforesaid for the Income Tax Authorities to determine and decide the Annual Letting Value. 3.5 After examining all aspects is seen that it cannot be denied that there is no relationship whatsoever between the Licensor and the Licensee, viz. the Induslnd Bank in the present case, nor is there any finding that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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