The Assessing Officer adopted 8% of the cost of flat while computing the notional value of the house property . On appeal the CIT (A ) restricted to 6 % of the cost of flat . On appeal the Tribunal held that the CIT ( A) should not have ignored the ratio laid down by the Jurisdictional High Court in CIT v. Tip TOP Typography ( 2014) 368 ITR 330 ( Bom ) (HC) and accordingly directed to adopt municipal ratable value . ( ITA NO 2660 & 2180 /Mum/ 2019 dt 12-7 -2021 ( AY . 2011 -12 & 2015 -16 )
Amit Balakrishna Jalan v . ACIT ( Mum) ( Trib) www.itatonline.org
S. 23 : Income from house property – Annual value – Annual value should be restricted to municipal ratable value – Estimate at 6% of cost of value of flat was held to be not justified . [ S. 22, 23 (1)(c) ]