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TMI Blog1992 (10) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... (I. T R. No. 74 of 1982), the question of law referred is as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in coming to the conclusion that the bona fide annual letting value of the property in question was Rs. 9,133 in the assessment year 1965-66 and Rs. 11,741 in the assessment year 1966-67 ? In respect of the assessment year 1967-68 (I. T. R. No. 71 of 1982),the question of law referred is as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the income from quarters let out to M/s. Modi Spinning and Weaving Mills Co. Ltd. and to outsiders should be assessed on the basis of rent actually received or receivable by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view the provisions of the U. P. Rent Control Act, it is the actual rent received which could be taxed and not the notional rent arrived at by the Income-tax Officer. The Appellate Assistant Commissioner having allowed the appeals in respect of all the three assessment years, the Department came up in appeal before the Income-tax Tribunal. Following its early decision in the case of Modi Spinning and Weaving Mills Co. Ltd. the Income-tax Tribunal reiterated that under the provisions of the U. P. Rent Control Act, the rent which had been first agreed to be paid by the tenant could not be increased.. The Income-tax Tribunal, therefore, came to the conclusion that the actual rent which was received alone could be regarded as the fair mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is not fair and reasonable, then the actual rent received by the assessee should be regarded as the fair annual letting value of the property concerned. We are in respectful agreement with the aforesaid decision of the Allahabad High Court. In the present case also, it is not the contention on behalf of the Department that the rent which was agreed between the assessee and the tenants was not a fair and a reasonable rent at the time when the properties were let out. It is also not disputed that the provisions of the U. P. Rent Control Act were applicable and this being so, the ratio of the decision of the Allahabad High Court in Modi Spinning and Manufacturing Mills Co.'s case [1980] 125 ITR 361 is clearly applicable. In our opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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