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| The Tax Publishers2020 TaxPub(DT) 3603 (Mum-Trib) INCOME TAX ACT, 1961
Section 23
While determining annual value from house property having regard to municipal rentable value, since municipal rateable value is a recognized basis for determination of ALV there was no justification for action of AO in disregarding said municipal rateable value.
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Income from house property - Determination of annual value - Municipal valuation vis-Ã -vis actual market rateable value -
Revenue challenged order of CIT(A) holding that the ALV should be based on municipal rateable value. Revenue contended that CIT(A) failed to appreciate fact that as per the deeming provision of section 23(1), ALV is higher of the sum for which the property might reasonably be expected to be let out for year to year or actual rent received. Held: As decided in assessee's own case, following Tip top typography, municipal valuation rate for determining the ALV is also an accepted method of valuation. Thus, AO was directed to compute ALV based on municipal rateable value.
Followed:CIT-12 v. Tip Top Typography 2014 TaxPub(DT) 3370 (Bom-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 40(a)(ia)
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