Independent enquiry u/s. 23(1)(a) can be made by AO to determine annual value u/s. 22

Advertisement Tivoli Investment & Trading Co. Pvt. Ltd Vs ACIT (Bombay High Court) Bombay High Court held that if municipal rateable value doesn’t depict correct annual value, AO can make independent enquiry under section 23(1)(a) of the Income Tax Act and determine the sum which the property is reasonably expected to fetch for purpose of determining annual value u/s. 22. Facts- The issue involved here is whether it is permissible for the Assessing Officer to determine annual value of the property for the purposes of taxation u/s. 22 of the Income Tax Act, 1960 (the Act) higher than t...