Commissioner Of Income-Tax vs Sita Ram Arvind Kumar
1990 Latest Caselaw 23 Del

JUDGMENT

B.N. Kirpal, J.

1. The petitioner has proposed the following question of law to this court for being referred to it by the Tribunal:

"Whether the Income-tax Appellate Tribunal was correct in law and on the facts of the case in confirming the view of the Appellate Assistant Commissioner that the annual letting value of the assessed's share in the property at 7/184, Swarup Nagar, Kanpur, is to be taken at Rs. 2,400 as shown by the assessed without considering the fact that the annual letting value was determined by the Income-tax Officer with reference to the value for purposes of section 9(2A) of the Uttar Pradesh Urban Building (Regulation, Letting, Rent and Eviction) Act, 1972?"

2. The question involves the determination of the annual letting value of property No. 7/184, Swarup Nagar, Kanpur. The Income-tax Officer sought to assessed the value of the said house at Rs. 23,140. An appeal was filed against this and the Appellate Assistant Commissioner came to the conclusion that the correct method of assessing the annual letting value was to determine the standard rent under the provisions of the Uttar Pradesh Urban Building (Regulation, Letting, Rent and Eviction) Act, 1972. The appellate authority came to the conclusion that section 3(k) of the said Act applied and reading the said provision with section 3(f), the annual letting value had to be the value as assessed or determined by the Nagar Mahapalika. It was found as a fact that the Kanpur Nagar Mahapalika had, in respect of the property in question, determined the annual letting value at Rs. 12,000. As the house was self-occupied, the annual letting value to be added in the hands of the assessed had to be one-fifth and this was worked out at Rs. 2,400. Appeal against this was unsuccessful before the Income-tax Appellate Tribunal and, thereafter, when the application under section 256(1) was dismissed, the present application was filed.

3. The Supreme Court in the case of Sheila Kaushish v. CIT [1981] 131 ITR 435 has now authoritatively held that the annual letting value has to be determined according to the principles laid down by the respective Rent Restriction Act. In the instant case, the Kanpur Nagar Mahapalika had determined the rent of the property at Rs. 12,000. Therefore, one-fifth of the same came to Rs. 2,400. In view of the decision in Sheila Kaushish's case , the question proposed has now become academic.

4. The petition is, accordingly, dismissed. No costs.