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TMI Blog2019 (3) TMI 1869X X X X Extracts X X X X X X X X Extracts X X X X ..... UMBAI ] by following the decision of Hon ble Jurisdictional High Court in the case of Smitaben N. Ambani vs. CWT [ 2009 (1) TMI 430 - BOMBAY HIGH COURT ] High Court held that the ALV of the vacant flat has to be made on the basis of municipal ratable value and thus dismissed the appeal of the Revenue. The said decision of the Tribunal was affirmed by the Hon ble Bombay High Court in the case of Pr. CIT vs. Laxmi Jain [ 2018 (4) TMI 1644 - BOMBAY HIGH COURT ] on the ground that there is no substantial question of law arising from the Revenue s appeal. In the case of Harsh Jain vs. DCIT [ 2015 (7) TMI 1253 - ITAT MUMBAI ] has held that the ALV of the property has to be computed as per municipal ratable value as deemed income from the house pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w ,the Ld. CIT(A) erred in ignoring the fact that the Assessing Officer had made local enquiries to determine the sum for which the properties could be expected to be let for the year as per Section 23(l)(a)of the IT Act,1961? (iii) On the facts and circumstances of the case and in Law, the Ld. CIT(A) erred in ignoring the facts as brought on record by the Assessing Officer regarding the estimated rent for the properties for the purposes of computing income u/s 23(l)(a) of the I T Act,1961? The appellant prays that the order of Commissioner of Income Tax (Appeal) on the above ground be set aside and that the AC/DC be restored. The appellant craves leave to amend or alter any grounds or add a new ground, which may be necessary. 3. The only c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, without prejudice admitted that the amount adopted in A.Y. 2009-10, 2010-11 and 2011-12 may be adopted in A.Y. 2012-13. The AO also referred to the rental rates as per various websites in the nearby areas for the month of March 2015 and calculated the average rate @ ₹ 51 during the financial year 2014-15. Besides, the inspector of Income Tax also conducted a field enquiry and filed a report dated 13.03.2015 which is reproduced at page No.6 of the assessment order. The AO on the basis of average rate by various websites and inspector s report calculated the ALV for A.Y. 2014-15 at ₹ 56 per sq. ft. by treating the same as most reliable and then did backward calculation to determine the rental rates for the year ended 31.03.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is in appeal before us challenging the ALV at ₹ 20,81,895/- computed by the Ld. CIT(A). Para 7.4.12 of the Ld. CIT(A) s order is reproduced herein under: 7.4.12 The records reveal that my Ld. Predecessor, vide his order dated 28.02.2014 in Appeal No. CIT(A)-41 7DCCC-39/1T-409/2012-13 in appellant's own case for A.Y. 2010-11, after considering various decisions had directed the Ld. AO to adopt the municipal rateable value as AlV. The Ld. C1T(A) observed that the rateable value was fixed by the Municipal Authorities in the year 2006-07 and had further held that 5% annual increase thereof in subsequent years as reasonable and had then computed the reasonable rateable value for the financial year under consideration. My Ld. Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.R. submitted that where the property is not occupied or rented out, in that case the ALV has to be determined on the basis of ratable value by the municipal authorities and not at the market rent. The Ld. A.R. relied on a series of decisions as under: 1. DCIT v. Laxmi Jain in ITA No. 2118/Mum/2012 for A.Y. 2009-10. 2. PCIT v. Laxmi Jain in Income Tax Appeal No. 1285 of 2015 for A.Y. 2009-10. 3. Harsh Jain v. DCIT in ITA No. 2710/Mum/2013 for A.Y. 2009-10 4. PCIT v. Harsh Jain in Income Tax Appeal No. 1438 of 2016 for A.Y. 2009-10 The Ld. A.R. therefore prayed before the Bench that the appeal of the assessee may be allowed and that of the Revenue may be dismissed in view of the ratio laid down by the coordinate benches of the Tribunal and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DCIT vs. Laxmi Jain in ITA No.2118/M/2012 A.Y. 2009-10 the co-ordinate bench of the Tribunal by following the decision of Hon ble Jurisdictional High Court in the case of Smitaben N. Ambani vs. CWT, 323 ITR 104 High Court held that the ALV of the vacant flat has to be made on the basis of municipal ratable value and thus dismissed the appeal of the Revenue. The said decision of the Tribunal was affirmed by the Hon ble Bombay High Court in the case of Pr. CIT vs. Laxmi Jain vide order dated 16.04.2018 on the ground that there is no substantial question of law arising from the Revenue s appeal. In the case of Harsh Jain vs. DCIT in ITA No.2710/M/2013 A.Y. 2009-10, the coordinate bench of the Tribunal has held that the ALV of the property has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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