“annual letting value”

Income HeadsSection 23Section 23238 judgments

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

Leading authorities on annual letting 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.

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.

Smitaben N. Ambani v. CWT

323 ITR 104 · 2010 · High Court

citing judgments

The annual value of a self-occupied property, for both wealth tax and income tax purposes, is the reasonable rent expected from a hypothetical tenant. When using municipal ratable value, statutory deductions permissible under municipal law must be added back to arrive at this expected rent.

Premsudha Exports (P.) Ltd. v. ACIT

110 ITD 158 · 2008 · ITAT

citing judgments

For the purpose of computing income from house property, the annual value under Section 23 must be determined even if the property is vacant or not actually let out, as the statutory phrase "property is let out" does not necessitate actual letting.

CIT v. Sane & Doshi Enterprises

377 ITR 165 · 2015 · High Court

citing judgments

Rental income from unsold property held by a real-estate developer is assessable under the head 'Income from House Property' and not as 'Business Income'. The treatment in books of account as stock-in-trade does not alter the income's character for tax purposes.

Judgments citing annual letting value

Suman P Khurana, Mumbai vs. ACIT Central Circle-3(2), Mumbai

In the result, the appeal filed by the assessee is hereby allowed accordingly

ITA 2415/MUM/2019[2012-13]Status: DisposedITAT Mumbai18 Apr 2022AY 2012-13

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No. 2415/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2012-13) Suman P. Khurana बिधम/ Acit, Central Circle-3(2) Room No.402, 4Th Floor, 501, Raheja Centre, Free Press Vs. Journal Marg, Nariman Point, Aayakar Bhawan, Maharshi Mumbai-400021. Karve Road, Churchgate, Mumbai-400020.S स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aahpk0190Q (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri Shekhar Gupta Revenue By: Shri Hoshang B. Irani सुनवाई की तारीख / Date Of Hearing: 24/01/2022 घोषणा की तारीख /Date Of Pronouncement: 18/04/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 21.02.2019 Passed By The Commissioner Of Income Tax (Appeals) -51, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2012- 13. 2. The Assessee Has Raised The Following Grounds: - “1. The Learned Cit(A) Has Erred In Law & On The Facts Of The Case In Estimating The Annual Value Of The Property At Maker Chambers Iv, Nariman Point, Mumbai At Rs.82,86,301/- As Against Nil Declared By The Assessee & Denying The Exemption Claimed U/S 23(1)(C) By The Assessee. A.Y. 2012-13 2. The Learned Cit(A) Has Erred In Law & On The Facts Of The Case In Estimating The Value Of The Property At Gujranwala Town, Delhi At Rs.6,60,000/- As Against Nil Declared By The Assessee & Denying The Exemption Claimed U/S 23(1)(C) By The Assessee.

For Appellant: Shri Shekhar GuptaFor Respondent: Shri Hoshang B. Irani

Section 143(2)Section 14ASection 23(1)(a)Section 23(1)(c)

Point, Mumbai 2 Office Premises A/12, Not submitted Nil Gujranwala Town, Delhi The explanation was called. The reply was found non-satisfactory. The Annual Letting Value (ALV) of property situated at Nariman Point at 2 A.Y. 2012-13 Mumbai was assessed to the tune of Rs.82 ... Annual Letting Value of the property No. A/12 Gujranwala Town, Delhi was assessed to the tune of Rs.6,60,000/-. After allowing the deduction @ 30%, the income of the assessee was assessed to the tune of Rs.62,62,411/-. After some disallowance u/s 14A of the Act, the total income

Deena Asit Mehta, Mumbai vs. DCIT 4(1)(1), Mumbai

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

ITA 4449/MUM/2018[2014-15]Status: DisposedITAT Mumbai08 Apr 2022AY 2014-15

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Yogesh Thar, a/wFor Respondent: Shri T. Shankar, Sr. A.R. – CIT

Section 143(3)Section 24Section 254(1)Section 254(2)

Bench of Tribunal in assessee’s own case for assessment year 2012–13, added amount equal to 9% of security deposit as additional Annual Letting Value under the head “Income from House Deena Asit Mehta ITA No.4449/Mum./2018 Property”. The CIT(A) further allowed deduction under section ... decision in Tip Top Typography (supra), held that notional interest on security deposits cannot be taken into consideration for determining and computing the annual letting value. Deena Asit Mehta ITA No.4449/Mum./2018 8. On the other hand, Shri T. Shankar, learned Departmental Representative (“learned DR”) submitted that no new arguments

Sopariwala Exports, Mumbai vs. Dy CIT -8(1), Mumbai

In the result, the appeal filed by the assessee in ITA N0

ITA 1383/MUM/2021[2012-13]Status: DisposedITAT Mumbai31 Mar 2022AY 2012-13

For Appellant: Ms. Hema KatariaFor Respondent: Shri C.T. Mathews

Section 143(3)Section 147Section 148Section 23Section 24

including society maintenance charges is also charged by the housing society to members (landlord) whose properties are let-out. Therefore, while determining the annual letting value (ALV) of the property, the sum for which the property might be reasonably expected to be let from year to year, the nonoccupancy charges ... paid to the society has to be taken into account. When it is taken into account, the annual letting value (ALV) would be considerably reduced. Because payment of non-occupancy charges is inextricably 4 ITA No.1383/Mum/2021 A.Y. 2012-13 Sopariwala Exports Vs. DCIT-8(1) linked with the letting

Dr. Nirmal Jain, Mumbai vs. ITO Circle-11(1)(2), Mumbai

In the result, both the appeals filed by the assessee are allowed

ITA 4825/MUM/2019[2010-11]Status: DisposedITAT Mumbai25 Mar 2022AY 2010-11

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadaleita No. 4825 & 4826/Mum/2019 (A.Y: 2010-11 & 2013-14) Dr. Nirmal Jain Vs. Ito, Circle – 11(1)(3) 2403/2404, Tower-B, Room No. 202, Oberoi Woods, Oberoi Aayakar Bhavan, Garden City, Goregaon Mumbai – 400020. (E), Mumbai – 400063 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaopj1273 Appellant .. Respondent Appellant By : Mr. Madhur Agrawal.Ar Respondent By : Ms.Neena Jeph.Sr. Dr Date Of Hearing 16.03.2022 Date Of Pronouncement 29-.03.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: These Are The Appeals Filed By The Assessee Against The Separate Orders Of The Commissioner Of Income Tax (Appeals)-18, Mumbai For A.Y.2010-11 Passed U/S 143(3) R.W.S 147 Of The Income Tax Act & For A.Y.2013-14 U/Sec143(3) & 250 Of The Act.

For Appellant: Mr. Madhur Agrawal.ARFor Respondent: Ms.Neena Jeph.Sr. DR

Section 142(1)Section 143(1)Section 143(3)Section 147Section 148Section 23(1)(a)

DCIT, Mumbai has treated the oneself occupied property as deemed let of Rs. 4,02,271/- after allowing standard deduction of 30% Annual Letting Value(ALV)and the CIT(A) has confirmed the addition. In the present case, the A.O. considered the treatment of deemed let out property

M/S Netra Software Technologies Pvt Ltd, Bangalore vs. The Assistant Commissioner of Income Tax (CPC) (Assessss Is Assessed to Tax With ACIT Circle-5(1)(1), Bangalore

In the result, the appeal by the assessee is dismissed

ITA 306/BANG/2018[2011-12]Status: DisposedITAT Bangalore09 Mar 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2011-12

For Appellant: Smt. Sheetal Borkar, AdvocateFor Respondent: Smt. Priyadarshini Mishra, Addl. CIT(DR), ITAT, Bangalore

Section 143(1)Section 154Section 23(1)(c)Section 24

interest payment on construction of commercial building. According to her, the construction of property has been completed and interest has been paid. The annual letting value of the property was NIL on account of non-letting out of the said property. However, the interest incurred by the assessee ... there is no income under any other head of income, same has to be carried forward. She further submitted that in case annual letting value of the property u/s. 23(1)(c) is to be considered as NIL as the property was not let Page 4 of 6 out even

Akbar Hasnali Padamsee, Mumbai vs. ACIT-18(2), Mumbai

In the result, the appeals filed by the assessee are partly allowed

ITA 6162/MUM/2019[2011-12]Status: DisposedITAT Mumbai25 Feb 2022AY 2011-12

Bench: Shri S. Rifaur Rahman, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. Nos. 6162 To 6166/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2011-12 To 2015-16) Akbar Hasanali Padamsee बिधम/ Joint Commissioner Of 802, Vinayak Aagan Chs Ltd, Income Tax-18(2) Vs. Old Prabhadevi Road, Worli, Piramal Chambers, Parel, Mumbai-400025. Mumbai-400012. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Ahfpp9512N (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Ishwer Rathi Revenue By: Shri Mehul Jain (Dr) सुनवाई की तारीख / Date Of Hearing: 12/01/2022 घोषणा की तारीख /Date Of Pronouncement: 25/02/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Above Mentioned Appeals Against The Order Dated 28.06.2019 Passed By The Commissioner Of Income Tax (Appeals) -33, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys. 2011- 12 To 2015-16. Ita. No.6162/Mum/2019 2. The Assessee Has Filed The Present Appeal Against The Order Dated 28.06.2019 Passed By The Commissioner Of Income Tax (Appeals) -33, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. Ita Nos. 6162 To 6166/M/2019 A.Ys.2011-12 To 2015-16 3. The Assessee Has Raised The Following Grounds: -

For Appellant: Shri Ishwer RathiFor Respondent: Shri Mehul Jain (DR)

Section 143(1)Section 143(2)

following grounds: - “1 On the facts and circumstances of the case and in law, the Learned CIT(A) has erred in confirming the annual letting value of flat at Akbar House at Rs.1,62,564/-. 2. On the facts and circumstances of the case and in law, the Learned ... erred in confirming the annual letting value of flat at 3rd floor in Piroja Court, Juhu at Rs.5,57,568/-. 3. On the facts and circumstances of the case and in law, the Learned CIT(A) has erred in confirming the annual letting value of flat at Hrishikesh Society

Sopariwala Exports, Mumbai vs. ACIT-CC-8(1), Mumbai

In the result, the appeal filed by the assessee in ITA N0

ITA 823/MUM/2021[2017-18]Status: DisposedITAT Mumbai04 Feb 2022AY 2017-18

Bench: Shri S Rifaur Rahman & Shri Pavan Kumar Gadalesopariwala Exports Vs. Acit, Cc-8(1) 21St Floor, Nirmal Bldg, R-656, Aayakar Nariman Point, Bhavan, Mumbai – Mumbai – 400021. 400020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacfs6325E Appellant .. Respondent Appellant By : Ms.Ritu Kamalkishore.Ar Respondent By : Mr.Dilipkumar Shah.Sr.Dr Date Of Hearing 19.01.2022. Date Of Pronouncement 14.02.2022. आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Of Cit(A) -50, Mumbai Passed U/S 143(3) & 250 Of The Income Tax Act. The Assessee Has Raised The Following Grounds Of Appeal.

For Appellant: Ms.Ritu KamalKishore.ARFor Respondent: Mr.Dilipkumar Shah.Sr.DR

Section 143(1)Section 143(2)Section 143(3)Section 23Section 24

paid to the housing society in respect of let out premises owned by the appellant while computing the annual letting value (ALV). Sopariwala Exports, Mumbai. 2. Without prejudice, on the facts and in the circumstances of the appellant's case and in law the Ld. CIT(A) erred in confirming ... including society maintenance charges is also charged by the housing society to members (landlord) whose properties are let-out. Therefore, while determining the annual letting value (ALV) of the property, the sum for which the property might be reasonably expected to be let from year to year, the non- occupancy

Amal Allana, New Delhi vs. ITO Ward-30(1), New Delhi

In the result, the appeal filed by the assessee is

ITA 4371/DEL/2019[2015-16]Status: DisposedITAT Delhi23 Dec 2021AY 2015-16

Bench: Shri R.K. Panda[Assessment Year: 2015-16]

Section 154Section 22Section 24

accordingly determined the yearly rent at Rs.18,00,000/-. After allowing deduction u/s 24 of the Act, the Assessing Officer determined the Annual letting value of the property at Rs.12,60,000/- and added the same to the total income of the assessee. 4. Before ... that case the issue was in deposits. Even in the said decision also the Hon’ble High Court has held that the annual letting value fixed by the municipal authorities can be a rational yardstick. Since, the assessee in the instant case has declared the deemed income from the ground

Manju Rani Singhal, Faridabad vs. ITO Ward - 33(2), New Delhi

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

ITA 5100/DEL/2019[2012-13]Status: DisposedITAT Delhi14 Sept 2021AY 2012-13

Bench: Shri R.K. Pandaassessment Year: 2012-13 Manju Rani Singhal, Vs. Ito, H.No.131, Sec.15, Ward-33(2), Faridabad. New Delhi. Pan: Aajps0265Q (Appellant) (Respondent) Assessee By : Shri Sumer Chand Garg, Ca Revenue By : Shri R.K. Gupta, Sr. Dr Date Of Hearing : 05.08.2021 Date Of Pronouncement : 14.09.2021 Order

For Appellant: Shri Sumer Chand Garg, CAFor Respondent: Shri R.K. Gupta, Sr. DR

Section 143(3)Section 15Section 154Section 24

against invoking the provisions of Section 154. 2. The Ld. AO and CIT(A) erred in law and on facts in considering the annual letting value at Rs.2777400/- instead of Rs.2716725/- as declared by the assessee on the basis of actual receipts which were duly verified

V.V.Trust, New Delhi vs. ITO, Exemption, Ward-2(3), New Delhi

Appeal of the assessee is allowed

ITA 3687/DEL/2018[2014-15]Status: DisposedITAT Delhi27 Aug 2021AY 2014-15

Bench: Shri Kul Bharata N D Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Suresh Gupta, C. AFor Respondent: Shri Govind Singhal, Sr. DR

Section 143(3)Section 271(1)(C)Section 271(1)(c)

addition shows that assessee’s case was picked up for scrutiny for the reason that there is a high increase in annual letting value of the house property. During the course of assessment proceedings assessee revised his return of income to Rs. 71,42,720/- claiming that due to over

M/S. Ansal Properties & Infrastructure Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 792/DEL/2015[2012-13]Status: DisposedITAT Delhi16 Jul 2021AY 2012-13

Bench: Shri G.S. Pannu & Before Shri G.S. Pannu & Before Shri G.S. Pannu Before Shri G.S. Pannu & Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble Ms. Suchitra Kamble

For Appellant: Shri H. Siva Prasad Reddy

Section 143(3)Section 23Section 80I

facts and in the circumstances of the case, the learned CIT(A) has erred in law in confirming the addition of notional Annual Letting Value of Rs.5,74,42,675/- (out of Rs.6,93,49,975/-) on closing stock of flats/spaces by following the Hon’ble Delhi High Court ... Appeal Revised and Additional Gr ounds of Appeal Revised and Additional Gr Revised and Additional Gr ounds of Appeal ounds of Appeal Notional Annual Letting Value (ALV) Notional Annual Letting Value (ALV) Notional Annual Letting Value (ALV) Notional Annual Letting Value (ALV) 1.1 That in the facts and circumstances

M/S. Ansal Properties & Infrastructure Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 791/DEL/2015[2011-12]Status: DisposedITAT Delhi16 Jul 2021AY 2011-12

Bench: Shri G.S. Pannu & Before Shri G.S. Pannu & Before Shri G.S. Pannu Before Shri G.S. Pannu & Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble Ms. Suchitra Kamble

For Appellant: Shri H. Siva Prasad Reddy

Section 143(3)Section 23Section 80I

M/S. Ansal Properties & Infrastructure Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 790/DEL/2015[2010-11]Status: DisposedITAT Delhi16 Jul 2021AY 2010-11

Bench: Shri G.S. Pannu & Before Shri G.S. Pannu & Before Shri G.S. Pannu Before Shri G.S. Pannu & Ms. Suchitra Kamblems. Suchitra Kamble Ms. Suchitra Kamble Ms. Suchitra Kamble

For Appellant: Shri H. Siva Prasad Reddy

Section 143(3)Section 23Section 80I

Vidya Education Investments Pvt. Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the assessee is allowed

ITA 1778/DEL/2016[2011-12]Status: DisposedITAT Delhi26 Apr 2021AY 2011-12

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumar(Through Video Conferencing) Ita No. 1778/Del/2016 : Asstt. Year : 2011-12 Vidya Education Investments Pvt. Vs Dcit, Ltd., 5C, Old Friends Colony Circle-17(1), (West), Main Mathura Road, New Delhi New Delhi-110065 (Appellant) (Respondent) Pan No. Aabcv9413E Assessee By : Sh. P. C. Yadav, Adv. Revenue By : Sh. Bhopal Singh, Sr. Dr Date Of Hearing: 08.03.2021 Date Of Pronouncement: 26.04.2021

For Appellant: Sh. P. C. Yadav, AdvFor Respondent: Sh. Bhopal Singh, Sr. DR

Section 133(6)Section 68

upper limit, if the fair rent is less than the standard rent, then, it is the fair rent which shall be taken as annual letting value and not the standard rent. In the present case, the assessee explained all the facts, before A.O. with regard to rent received and that ... that assessee has received a low rent. However, it is an extraneous consideration, which has no bearing on the issue of determination of annual letting value of the property. The Ld. CIT(A) did not undertake any necessary exercise to compute annual letting value of the assessee as per above

Commissioner of Ncome Tax vs. Ansal Buildwell Limited

ITA - 169 / 2008HC Delhi29 Nov 2012

follows: "Whether the ITAT was correct in law in deleting the addition made by the Assessing Officer on account of notional annual letting value of unsold flats and spaces owned by the assessee by applying the provisions of sections 22 & 23 of the Income Tax Act, 1961?" 2. The instant ... record would indicate that the only question of law Which was ii considered and framed on October 2010 pertained to whether the |! notional annual letting value can be adopted in respect of the flks, held as stock-in-trade, lying unsold at the end of the year. According

Commissioner of Income Tax vs. M/S Uberoi Sons Machines Ltd

ITA - 166 / 2006HC Delhi31 Aug 2012

Section 147Section 147(1)

than the actual rent) was payable as rent in respect of the premises and the assessment was completed on the basis of enhanced annual letting value. The addition sought to be made for the years previous to the year when the enhanced rents or mesne profits became payable was challenged ... which date, the decree for mesne profits was passed in favor of the assessee.” 10. Section 23 of the Act explains “annual letting value,” for purposes, of income from house property. The said provision reads as follows: 2012:DHC:5352-DB ITAs 166, 168, 243, 778/2006 Page 8 “Section

Psb Industries India Pvt Ltd

Appeal is dismissed

ITA - 792 / 2011HC Delhi11 Jul 2011

Section 143(1)Section 143(2)Section 143(3)Section 24Section 269USection 27(1)(c)Section 271(1)(c)Section 274

Along with this specific provisions under Section 23, there is no defence of the assessee that disclosing the annual rent as the annual letting value for the purposes of tax was bona fide. In the instant case, the assessee had entered into an agreement to lease out the property ... assessee is given in second schedule to the Lease Agreement, which is 1,23,490 sq. ft. The approved valuer has valued the annual letting value of total constructed area of 1,23,490 sq. ft. at `75,63,360/- 13. Interestingly, when the AO found that

Commissioner of Income Tax Delhi Central III vs. Moni Kumar Subba

ITA - 499 / 2008HC Delhi30 Mar 2011

Section 143(1)

Rent Control Act, if applicable in the case of the assessee. Further, he had also not compared the actual rent received with the annual letting value (ALV) of the property determined under Section 23(a) for the purpose of the tax under Section 22 thereof. Applying the principle enumerated ... arrived at. However, learned counsel for the Revenue before the Division Bench and also before us submitted that even while ascertaining the annual letting value for the purposes of Clause (b) of Section 23 (1), it is necessary to determine the „fair rent‟ in terms of Clause