1981 (7) TMI 93

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..... sh Market, Bhuleshwar, Bombay. The assessee determined the annual letting value under s. 23 of the IT Act on the basis of the actual rent received. The Municipality, however, levied the tax on the basis of the annual value arrived at by taking into account the actual rent received from all the tenants except one, namely, Shri Sharad D. Muni. In the case of this particular tenant, the assessee had let out a portion of the building of Rs. 1,200 per month by an indenture dt. 28th July, 1972. Shri Muni was given right to sub-lease the leased premises, which right was denied to other tenants. It appears, Shri Muni let out the premises soon after 28th July, 1972 to Dena Bank at Rs. 3,315 per month. The Municipal Corporation took this rent of Rs. .....

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..... or the Department, urged before us that the AAC erred in his decision. He stated that the Bombay Rent, Hotel and Lodging Houses Rates Control Act expired on 31st March, 1970 and so the provisions thereof were not applicable. Secondly, he stated that the assessee could not have received only Rs. 1,200 per month when Shri Muni has let out the same premises for Rs. 3,315 soon afterwards. Regarding asst. yr. 1975-76 along, he urged that the original assessment was set aside by the CIT under s. 263 with a direction that the annual letting value as adopted by the Municipal Corporation should be taken for making the assessment. Inasmuch as the assessee did not appeal against the said decision of the Commr., the said matter has become final and so .....

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..... should not be allowed to agitate this matter at this late stage. 6. We have considered the contentions of both the parties as well as the facts on record. We find that the arguments raised for the assessee are based on sound reasoning and good authority. We find that the Bombay Rents, Hotel Lodging Houses Rates Control Act has indeed been extended from year to year and was in force during the years under consideration. The case of Dewan Daulat Rai Kapoor clearly supports the case of the assessee. In the absence of any indication to show fraud or collusion between the assessee and Shri Muni, the standard rent be taken at any figure over and above the sum of Rs. 1,200 as stated in the lease deed. Shri V.H. Patil has pointed out that the .....

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