COMMISSIONER OF INCOME TAX Vs. WELLWORTH AGENCIES (P) LTD.
LAWS(DLH)-2007-8-248
HIGH COURT OF DELHI
Decided on August 10,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Wellworth Agencies (P) Ltd. Respondents

JUDGEMENT

V.B.GUPTA, J. - (1.) BY this common judgment three appeals filed by the Revenue bearing Nos. 1093, 1099 and 1464/2006 arising out of the 'Tribunal') in ITA Nos. 2336/Del/2001, 1502 and 587/Del/2003 for the asst. yrs. 1997 -98, 1998 -99 and 1999 -2000 are being disposed of, since common question of fact and law is involved in these three appeals.
(2.) BRIEF facts are that the assessee had declared rental income from Four Storey Building at 39, Community Centre, Zamrudpur, Kailash Colony, New Delhi let out to Group concerns. During the course of assessment proceedings, the AO found that the assessee had not declared rent for basement though the same were occupied by other concerns and as such he computed the annual letting value on the basis of rent declared for first floor and determined income for house property as against the annual letting value declared for by The assessee.
(3.) AGGRIEVED by the order of the AO, the assessee filed an appeal before the Commissioner of Income -tax (Appeals) ['CIT(A)' for brevity]. The CIT(A) directed the AO to accept the Annual Letting Value as declared by the assessee on the ground that no notional value can be taken other than what is envisaged under s. 23(1) of the IT Act, 1961 (for short as 'Act'). Since the assessee had declared actual rent received, which was more than the municipal value, the same was to be accepted. The Revenue challenged the order of CIT(A) before the Tribunal and the Tribunal on appeal vide impugned order deleted the additions made by the AO in Annual Letting Value on the ground that the AO had not brought on record any evidence to show that the actual rent declared by the assessee was not the real rent received by it or that the assessee was receiving any rent for the basement and the ground floor which according to the assessee was not let out by it and was in its possession.;


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