“annual value”

Chapter I - PreliminarySection 2 - DefinitionsSection 2(2) / Section 23 / ITR Schedule HP425 judgments

The decision most relied on for annual value is Chennai Properties & Investments Ltd. v. CIT (373 ITR 673), cited in 381 judgments on BharatTax.

Leading authorities on annual value

Chennai Properties & Investments Ltd. v. CIT

373 ITR 673 · 2015 · Supreme Court

381

citing judgments

Income from immovable property, such as unsold flats or shops, held by an assessee as stock-in-trade in their business of acquiring and holding properties is taxable as 'business income' and not 'income from house property'. Consequently, notional annual letting value under Section 23 cannot be attributed to such stock-in-trade.

CIT v. Ansal Housing Finance & Leasing Co. Ltd.

354 ITR 180 · 2013 · High Court

208

citing judgments

Annual Letting Value (ALV) of unsold stock-in-trade flats/shops held by a real estate developer can be assessed under Section 22 of the Income Tax Act, 1961, as income from house property. This approach was followed by the Assessing Officer (AO) based on this decision.

CIT v. Tip Top Typography

368 ITR 330 · 2014 · High Court

161

citing judgments

For computing income from house property, the Annual Letting Value (ALV) cannot be arbitrarily estimated by the Assessing Officer, but must be determined based on the Municipal ratable value of the property.

CIT v. Moni Kumar Subba

333 ITR 38 · 2011 · High Court

citing judgments

Notional interest on an interest-free security deposit cannot be considered as actual or deemed rent under Section 23(1) of the Act. For determining Annual Letting Value (ALV) under Section 23(1)(a), it must be in accordance with municipal laws, considering extraneous circumstances, but not exceeding the standard rent as per rent control legislation.

Mrs. Shiela Kaushish v. CIT

131 ITR 435 · 1981 · Supreme Court

citing judgments

Income-tax authorities cannot add notional interest on a tenant's deposit to the income from a house property, as there is no provision for this in Sections 22 or 23 of the Income-tax Act, 1961. The annual value of a house property is determined by specific provisions within these sections, and not by hypothetical calculations.

Radha Devi Dalmia v. CIT

125 ITR 134 · 1980 · High Court

citing judgments

When determining income from house property under Section 23, the Annual Letable Value (ALV) can be estimated by deeming 7% of the property's value as notional rent, particularly when actual rent or other clear basis for ALV is absent.

CIT v. Bhaskar Mitter

73 Taxmann 437 · 1994 · High Court

citing judgments

The annual letting value of a property can be determined at a figure lower than that returned by the assessee if the returned value is not in accordance with the principles for determining annual letting value under section 23. Assessees can contend for a value based on the correct application of law.

Commissioner of Income Tax v. J. K. Investors (Bombay) Ltd.

248 ITR 723 · 2001 · High Court

citing judgments

The annual value of house property under Section 23 of the Income Tax Act cannot include notional interest on interest-free security deposits received from tenants. Notional interest cannot be added to an interest-free security deposit to arrive at the annual value for income from house property.

Judgments citing annual value

Island Star Mall Developes Private Limited, Mumbai Suburban vs. Dy Commissioner of Income Tax, Circle 6(3)(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 2249/MUM/2023[2015-16]Status: DisposedITAT Mumbai21 Feb 2024AY 2015-16

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

under the head "Income from house property" in the case of a let-out property is computed in the following manner.” Particulars Amount Gross Annual Value XXXX Less: Municipal Taxes Paid during the year XXXX Net Annual Value (NAV) XXXX Less Deduction under Section 24 Deduction

Island Star Mall Developes Private Limited, Mumbai Suburban vs. Dy Commissioner of Income Tax, Circle 6(3)(1), Mumbai

ITA 2248/MUM/2023[2014-2015]Status: DisposedITAT Mumbai21 Feb 2024AY 2014-2015

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI BR BASKARAN, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL

Island Star Mall Developes Private Limited, Mumbai vs. Deputy Commissioner of Income Tax, Circle 6(3)(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 2247/MUM/2023[2013-2014]Status: DisposedITAT Mumbai21 Feb 2024AY 2013-2014

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

Island Star Mall Developes Private Limited, Mumbai vs. Deputy Commissioner of Income Tax, Circle 6(3)(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 2246/MUM/2023[2012-2013]Status: DisposedITAT Mumbai21 Feb 2024AY 2012-2013

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

The DCIT, Central Circle-1(1), Ahmedabad vs. M/S. Venus Infrastructure & Developers Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is hereby dismissed

ITA 38/AHD/2021[2017-18]Status: DisposedITAT Ahmedabad14 Feb 2024AY 2017-18

Bench: Ms Suchitra Kamble & Shri Waseem Ahmedआयकरअपीलसं./Ita Nos. 37 & 38/Ahd/2021 धििाधरणणवध/Asstt. Years: 2008-09 & 2017-18 D.C.I.T, M/S Venus Infrastructure & Central Circle-1(1), Vs. Developers Pvt. Ltd., Ahmedabad 1101 Venus Amadeus, Jodhpur Cross Road, Ahmedabad-380015. Pan: Aahcs6254J (Applicant) (Respondent) Revenue By : Shri Akhilendra Pratap Yadaw Assessee By : Shri Tushar Hemani, Sr. Advocate With Shri Parimalsinh B. Parmar & Shri Vijay Govani A.Rs सुिणाईकीतारीख/Date Of Hearing : 08/02/2024 घोवणाकीतारीख/Date Of Pronouncement: 14/02/2024 आदेश/O R D E R Per Waseem Ahmed: The Captioned Two Appeal Have Been Filed At The Instance Of The Revenue Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-11, Ahmedabad, Of Even Dated 20/01/2021 Arising In The Matter Of Assessment Order Passed Under S. 147 R.W.S. 143(3) & 143(3) Of The Income Tax Act 1961 (Here- In-After Referred To As "The Act") Relevant To The Assessment Years 2008-09 & 2017-18. First, We Take Up Ita No. 38/Ahd/2021, An Appeal By The Revenue For Ay 2017-18

For Appellant: ShriFor Respondent: Shri Akhilendra Pratap Yadaw

Section 80Section 80I

brought to tax under the head „Income from house property". We find from a perusal of Sec. 22 of the Act that the ,,annual value" of any property consisting of any building or land appurtenant thereto of which the assessee is the owner, other than such portions of such property ... which are chargeable to income tax, shall be chargeable to income tax under the head „ Income from house property". Further, the determination of the ,,annual value" of the property is envisaged in Sec. 23 of the Act. Sec. 23(l)(a) contemplates that the sum for which the property might

The DCIT, Central Circle-1(1), Ahmedabad vs. M/S. Venus Infrastructure & Developers Pvt. Ltd., Ahmedabad

In the result, the appeal of the Revenue is hereby dismissed

ITA 37/AHD/2021[2008-09]Status: DisposedITAT Ahmedabad14 Feb 2024AY 2008-09

For Appellant: ShriFor Respondent: Shri Akhilendra Pratap Yadaw

Section 80Section 80I

Tarun Tolaram Kapoor, Mumbai vs. Assistant Commissioner of Income Tax (OSD) Ward-26(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3395/MUM/2023[2008-09]Status: DisposedITAT Mumbai14 Feb 2024AY 2008-09

Bench: Shri Br Baskaran, Am & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.3395/Mum/2023 (निर्धारण वर्ा / Assessment Years: 2008-09) Tarun Tolaram Kapoor बिधम/ Acit (Osc) 4/9, Vivekanand Society, Room No. 609, 6Th Floor, Vs. Th Kataria Marg, Mahim Kamaladevi Mittal (W), Mumbai – 400016. Ayurvedic Hospital Bldg, Charni Road (W), Mumbai – 400 002. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabpk3828M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Siddhesh Chaugule Revenue By: Shri P.D Chougule (Addl. Cit), Sr. Dr सुनवाई की तारीख / Date Of Hearing: 07/02/2024 घोषणा की तारीख /Date Of Pronouncement: 14/02/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) -57, Mumbai, Dated 28.07.2023 For Ay. 2011-12. 2. The Assessee Has Challenged The Validity Of The Reopening By Ao (Jurisdiction) U/S 147 Of The Income Tax Act, 1961 (Hereinafter “The Act”). So The Legal Issue Is Taken Up First.

For Appellant: Shri Siddhesh ChauguleFor Respondent: Shri P.D Chougule (Addl. CIT), Sr. DR

Section 147Section 148Section 3

Tarun Tolaram Kapoor The assessee has shown four house properties as deemed to be let out properties. 1. Bangalore Property: Annual Value Rs.2,40,000/- After claiming deduction u/s.24 income comes to Rs.1,68,000/- against that assessee has claimed set of interest and claimed loss of Rs.6 ... Mahim property (Veer Savarkar Marg): Annual Value Rs.36,000/- This flat falls in the city area of Mumbai. Therefore the annual value appears to be to low. Although the assessee has offered the income of Rs.25,200/- for taxation. 3. Mahim Property: Annual Value Rs.40,000/- This falt falls

Rupali Hotels Private Limited, New Delhi vs. ACIT Circle-21(2), New Delhi

In the result, appeal of the assessee is partly allowed as above

ITA 942/DEL/2020[2016-17]Status: DisposedITAT Delhi14 Feb 2024AY 2016-17

Bench: Shri Amit Shukla & Shri M. Balaganesh[Assessment Year: 2016-17]

profession carried on at any other place, he has to reside at that other place in a building not belonging to him, the annual value of such house or part of the house shall be taken to be nil. 32. The learned DR relied upon the orders of authorities below

Varian Medical Systems International (India) Private Limited, Mumbaiqqq vs. Assessment Unit NFAC Cetnre ITO, Ministry of Finance Delhi, Delhi

In the result, the appeal of the assessee is partially allowed

ITA 2496/MUM/2022[2018-2019]Status: DisposedITAT Mumbai13 Feb 2024AY 2018-2019

Bench: Shri Narender Kumar Choudhry, Jm & Ms Padmavathy S, Am

For Appellant: Shri Ajit Jain a/w Shri Siddesh

Section 143(1)Section 144CSection 234BSection 234CSection 270ASection 37(1)Section 68Section 92C

section 24(a) provides for a standard deduction for a sum equal to 30% of the ITA No.1242/Del/2022 National Housing Bank vs. ADIT 9 annual value, but the assessee has claimed deduction at 40%. These situations warrant an adjustment. It is obvious that none of the three clauses of Explanation

Laila Rustom Jehangir, Mumbai vs. Income Tax Officer, International Tax-Ward-3(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3077/MUM/2023[2018-19]Status: DisposedITAT Mumbai08 Feb 2024AY 2018-19

Bench: Shri Vikas Awasthy & Shri Amarjit Singhlaila Rustom Jehangir Vs. Income Tax Officer, 1St Floor, 41/44, International Tax- Ward Shapoorji Pallonji Centre, 3(1)(1), Air India Building Minoo Desai Marg, Colaba Nariman Point, Mumbai – 400 005 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aacpj7267L Appellant .. Respondent Appellant By : Dhrmesh Shah & Ms. Mitali Parekh Respondent By : Anil Sant Date Of Hearing 18.01.2024 Date Of Pronouncement 08.02.2024

For Appellant: Dhrmesh Shah &For Respondent: Anil Sant

Section 23Section 24

supra) has held that maintenance charges and municipal taxes paid by the assessee are to be deducted from gross rent to arrive at the annual value. We find that in the case of Sharmila Tagore (supra), the Tribunal held that maintenance charges paid to housing society have to deducted even ... Bombay High Court in the case of J.K. Investors (Bombay) Ltd. (2001) 168 CTR (Bom) 189 has held that for the purpose of determining annual value of the property all taxes, cesses and outgoings being liabilities of the assessee, have to be excluded from assessable income in view

Asstt. Commissioner of Income Tax Circle 6(1)(2), Mumbai vs. M/S Island Star Mall Developers Pvt Ltd, Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 2357/MUM/2023[2017-18]Status: DisposedITAT Mumbai06 Feb 2024AY 2017-18

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

Assistant Commissioner of Income Tax-6(1)(2), Mumbai vs. Island Star Mall Developers Private Ltd, Mumbai

ITA 2356/MUM/2023[2016-2017]Status: DisposedITAT Mumbai06 Feb 2024AY 2016-2017

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

under the head "Income from house property" in the case of a let-out property is computed in the following manner.” Particulars Gross Annual Value Less: Municipal Taxes Paid during the year Net Annual Value (NAV) Less Deduction under Section 24 Deduction u/s 24(a) @ 30% NVA (Standard deduction) Deduction

Asstt. Commissioner of Income Tax Circle 6(1)(2), Mumbai vs. M/S Island Star Mall Developers Pvt Ltd, Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 2355/MUM/2023[2015-16]Status: DisposedITAT Mumbai06 Feb 2024AY 2015-16

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

Asstt Commissioner of Income Tax Circle 6(1)(2), Mumbai vs. M/S Island Star Mall Developers Pvt Ltd, Mumbai

ITA 2354/MUM/2023[2014-2015]Status: DisposedITAT Mumbai06 Feb 2024AY 2014-2015

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

Asstt. Commissioner of Income Tax Circle 6(1)(2), Mumbai vs. M/S Island Star Mall Developers Pvt Ltd, Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 2353/MUM/2023[2013-2014]Status: DisposedITAT Mumbai06 Feb 2024AY 2013-2014

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

Assistant Commissioner of Income Tax Circle 6(1)(2), Mumbai vs. M/S Island Star Mall Developers Pvt Ltd, Mumbai

ITA 2352/MUM/2023[2012-13]Status: DisposedITAT Mumbai06 Feb 2024AY 2012-13

Bench: Shri Br Baskaran & Shri Pavan Kumar Gadale

Tata Motors Ltd, Mumbai vs. ACIT 2(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 631/MUM/2013[2008-09]Status: DisposedITAT Mumbai05 Feb 2024AY 2008-09

Bench: Shri Vikas Awasthy& Shri S.Rifaur Rahmanआअसं.631/मुं/2013 (िन.व. 2008-09) Tata Motors Limited Bombay House, 24,Homi Mody Street, Hutama Chowk, Mumbai – 400001. Pan: Aaact-2727-Q ...... अपीलाथ"/Appellant बनाम Vs. The Addl. Commissioner Of Income Tax Circle -2(3), Mumbai. Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ....."ितवादी/Respondent अपीलाथ" "ारा/ Appellant By : Shri J.D.Mistry, Sr.Advocate With Shri Nikhil Tiwari,Advocate "ितवादी "ारा/Respondent By : Ms. Vatsala Jha, Cit-Dr & Shri Manoj Kumar Singh, Sr.Ar सुनवाई की ितिथ/ Date Of Hearing : 10/11/2023 घोषणा की ितिथ/ Date Of Pronouncement : 05/02/2024 आदेश/Order Per Vikas Awasthy, Jm:

For Appellant: Shri J.D.Mistry, Sr.Advocate with Shri Nikhil Tiwari,AdvocateFor Respondent: Ms. Vatsala Jha, CIT-DR and Shri Manoj Kumar Singh, Sr.AR

Section 116Section 143(3)Section 92C

such. Ground No.13 – Adjustment u/s. 92CA(3) of the Act in respect of property leased to Hispano adopting 10% of property as fair annual value : 45 48. The TPO in the order has held that the assessee has leased out property to Hispano without charging lease rent, hence, he estimated

Kanti Thermo Equip Pvt Ltd, Mumbai vs. Assistant Commissioner of Income Tax Circle 6(3)(2), Mumbai

ITA 3039/MUM/2023[2014-15]Status: DisposedITAT Mumbai31 Jan 2024AY 2014-15

Bench: Shri B.R. Baskaran (Am) & Shri Aby T. Varkey (Jm)

Section 23Section 23(1)(c)Section 23(4)Section 24Section 57

liability to pay such taxes was incurred by the owner according to the method of accounting regularly employed by him) in determining the annual value of the property of that previous year in which such taxes are actually paid by him. "[underline is ours] The question is how to determine

Shamdarshan Properties Private Limited, Mumbai vs. ITO Ward 3(3)(2), Mumbai

ITA 2777/MUM/2023[2014-15]Status: DisposedITAT Mumbai22 Jan 2024AY 2014-15

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadale

Section 143(1)Section 143(3)Section 154

claim of vacancy allowance is very much a part of the Income-tax Act, 1961. S.23(c) dealing with the method of determination of Annual Value states that where the property or any part of the property is let and was vacant during the whole or any part ... owner could not get any tenant / licensee and hence the said property was vacant during the whole year, the annual value of the same would be NIL as the assessee would be entitled to vacancy allowance." "As regards the query relating to conversion of the stock in trade into fixed

M/S. the Kothari Wheels, Pune vs. DCIT, CPC, Bangalore, Banglore

In the result, the appeal filed by the assessee stands dismissed

ITA 1420/PUN/2023[2018-19]Status: DisposedITAT Pune18 Jan 2024AY 2018-19

Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI PARTHA SARATHI CHAUDHURY (Judicial Member)

For Respondent: Shri Ajay Kumar Kesari

Section 139(1)Section 143(1)Section 2Section 2(24)Section 2(24)(x)Section 36(1)(va)Section 43B

which deduction exceeds specified statutory limit. For example, section 24(a) provides for a standard deduction for a sum equal to 30% of the annual value, but the assessee has claimed deduction at 40%. These situations warrant an adjustment. It is 6 obvious that none of the three clauses