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Municipal value is a bonafide method to determine ALV even if market value of rent is higher
Case Law Details
- Case Name
- CIT Vs M/s NRB Bearing Ltd (ITATMumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2007-08
- Courts
- All ITAT, ITAT Mumbai
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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 o...
There may be reasons where FMV can not be received or obtained from the tenant against let-out property considering the factors in the area and the tenant. In these circumstances Municipal vale can be the true value for making assessment.