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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-2’, NEW DELHI
Before: SHRI J. SUDHAKAR REDDY
This is an appeal filed by the assessee against the order dt. 20.10.2014 of Ld.CIT(A)-IX, New Delhi for Assessment Year 2010-11.
Brief facts:- The brief facts are that the assessee has property in Mumbai. The annual letting out value of this property was determined by the A.O. for the A.Y. 2008 as follows:
“Rent as per the prevailing market rate: 3.1 During the course of assessment proceedings, the assessee company has furnished information in respect of Income From House Property at Rs. 1,14,689/- in respect of property located at Gaia/Flat No. 202 & 203, 2nd Floor, Kamanwaia Chambers, Mahim (W), Mumbai. With reference to this a letter was issued on 13-02-2013 which was sent through Speed Post (ED80130582 21N) whereby the assessee company was show caused as to why not the annual lettable value be arrived at as per the prevailing Market rate instead of the actual receipts as shown in the books. The assessee company submitted its reply vide letter dated 20-02-2013.The submission of ITA No: 6887/Del/2014 A.Y. 2010-11 Theta Investments P.Ltd. the assessee company has been considered but the same is not acceptable as the facts of the case does not substantiate the rationale taken by the Hon'ble courts in the cited cases.
(a) Municipal Valuation, (b) The fair rent determinable under the Rent Control Act, 3.2 The municipal valuation taken by the company is not accepted as the annual value of the property, which was let out during the relevant year would be the higher of the following:- (a) Municipal valuation, (b) the fair rent determinable under the Rent Control Act and (c ) The actual Rent paid. As no actual rent was received the Gross Annual Value (GAV) should be based on the Fair Rent of the Property. In this connection the valuation done by the valuers at the time of assessment u/s 143(3) of the I.T. Act, 1961 for the A.Y. 2008-09 is taken as the base of calculating the GAV, which is estimated as follows. Valuation for the F.Y. 2007-08 Rs.17,10,000/- Add: Addition in rent value @ 10% per annum for the F.Y. 2008-09 and 2009-10 Rs. 3,59,100/- -------------------- Rs. 20,69,100/- Less: 30% rebate as per s.24(a) Rs. 6,20,100/- -------------------------- Rs. 14,48,370/- ================
I find that the issue in question is fairly covered in favour of the assessee and against the Revenue, by the orders of the Tribunal in the ITA No: 6887/Del/2014 A.Y. 2010-11 Theta Investments P.Ltd. assessee’s own case for the earlier A.Y. 2004-05 to 2007-08 in 6330, 6331 and 6332/Del/2012 order dt. 27.2.2013 as well as vide order in ITA 4532/Del/2011 for the A.Y. 2008-09 dated 28.9.2012. 4. Respectfully following the Coordinate Bench order, I allow this appeal of the assessee.
In the result, the appeal by the assessee is allowed. Order pronounced in the Open Court on 14th October,2015.