Brief Facts of the Case:
There are various Grounds in this case on which ITAT has discussed in detail. The two important Grounds of Appeals discussed are as follows:
1st Matter – Addition of Rs. 53,48,000/- (after 30% standard deduction on 76,40,000) on account of estimation of annual letting value (herewith “ALV”) while computing the income from house property:
The assessee owned two buildings; the flats in the said buildings were rented out. The Assessing Officer (herewith “AO”) accepted the ALV of all the flats except the two mentioned below:
| Particulars | Deposit recd | Name of the Tenant | Monthly rent recd | Date from which property is rented |
| Flat no. 4 | 3.5 Crores | Johnson & Johnson (1st Tenant) | 20,000/- | 01.01.02 to Nov 2006 |
| Flat no. 4 | 15 Lakhs | Futura Polyester (2nd Tenant) | 5,00,000/- | 16.01.2007 |
| Flat no. 5 | 2 Crores | Centurion Bank (3rd Tenant) | 1,00,000/- | 01.07.2004 |
The AO noted that Flat no. 4 and 5 were similar in nature but were rented out to 1st and 3rdtenants at much lesser rent than the 2nd tenant which showed that the market rate of the rent was much higher than what the assesse actually received. Hence, the AO estimated the market value of rent of these flats at Rs. 4,50,000/- p.m. and enhanced the ALV at Rs. 76,40,000/- as computed below:
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