\u00a0<\/p>\n
Municipal rateable value could be taken as annual value of property under section 23(1)(a) only when annual value under municipal laws so determined had close proximity with relevant assessment year, in case of significant gap between municipal rateable value and annual rent of property, Assessing Officer could make independent enquiry under section 23(1)(a). Where assessee let out office premises at a nominal license fee and substantial amount of security deposit, since assessee had contemporaneously availed overdraft facility of Rs. 51 lakhs, security deposit was real return for assessee and thus, Assessing Officer was justified in fixing annual rental value by taking into consideration twin factors of comparable rents and notional interest on security deposits.\u00a0 Developer\u2019s letter and certificate from premises society cannot be treated as cogent evidence for fixation of municipal rateable value. Concept of standard rent applicable only to statutory tenant enjoying protection from rent escalation an eviction. Assessee\u2019s premises were not governed by provisions\u00a0 of rent control legislation. Assessing Officer not bound to accept Municipal Rateable Value and can take in to consideration annual rent premises capable of fetching. Notional interest receivable on security deposit cannot be sole factor for deciding annual letting out value of property\u00a0 Comparable instance and return on overdraft facility taken by assessee from lessee Bank to arrive at sum of reasonable rent.\u00a0 Order of Tribunal affirmed.\u00a0\u00a0 (AY. 1990-91, 1991-92)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 23 : Income from house property-Annual value-Municipal rateable value-Only when annual value under municipal laws so determined had close proximity with relevant assessment year, in case of significant gap between municipal rateable value and annual rent of property, Assessing Officer could make independent enquiry under section 23(1)(a)-Security deposit-Nominal licence fee-Assessing Officer was justified in fixing annual rental value by taking into consideration twin factors of comparable rents and notional interest on security deposits-Developer\u2019s letter and certificate from premises society cannot be treated as cogent evidence for fixation of municipal rateable value-Property given on rent-Standard rent of premises-Concept of standard rent applicable only to statutory tenant enjoying protection from rent escalation an eviction-Assessee\u2019s premises were not governed by provisions of rent control legislation-Assessing Officer not bound to accept Municipal Rateable Value and can take in to consideration annual rent premises capable of fetching-Notional interest receivable on security deposit cannot be sole factor for deciding annual letting out value of property-Comparable instance and return on overdraft facility taken by assessee from lessee Bank to arrive at sum of reasonable rent-Order of Tribunal affirmed.
\n [S. 22, 23(1)(a), 260, Bombay Rents, Hotel and Lodging House Rates Control act, 1947]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59683","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fwD","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59683"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59683\/revisions"}],"predecessor-version":[{"id":59684,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59683\/revisions\/59684"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}