Deemed let Out property – ALV cannot exceed standard rent under Rent Control Act

The dispute is regarding determination of ALV of second house property at Ahmedabad which was self occupied by the assessee. Income from one SOP is exempt under the provisions of section 23 but the income from the second SOP is taxable and for this purpose ALV has to be determined under section 23(1)(a) as if the property was let out in view of the provisions of section 23(4)(b). Therefore, the revenue authorities are justified in taxing the second house property on the basis of fair rental value. However, the assessee has made a claim that the second SOP was covered under Rent Control Act. In...