| Case ID |
0516cf0e-1d40-48ad-b1e2-bb3e5f74f9bc |
| Body |
View case body. Login to View |
| Case Number |
I. T. As. Nos. 263, 264 and 269/ KB of 1983-84 |
| Decision Date |
Oct 18, 1987 |
| Hearing Date |
Oct 14, 1987 |
| Decision |
The Income Tax Appellate Tribunal decided that the Income Tax Officer (I.T.O.) must determine the reasonable annual letting value of properties under Section 9(2) of the Income Tax Act, 1922. The Tribunal emphasized that while actual rent received by a landlord can serve as a reliable indicator of reasonable rent, it cannot be the sole basis for determining annual letting value, especially when conflicting assessments are made by other statutory authorities. The ruling established that unless the I.T.O. provides additional evidence to support a departure from established annual letting values determined by other authorities, he cannot disregard those values. The decision highlighted the importance of past assessments and the necessity for the I.T.O. to collect material evidence before making any changes to established values. |
| Summary |
The case revolves around the determination of annual letting value under the Income Tax Act, 1922, specifically Section 9(2). The Income Tax Appellate Tribunal addressed the burden of proof on the Income Tax Officer (I.T.O.) to justify any changes to the annual letting value, especially when previous assessments were based on values set by other authorities such as the Excise and Taxation Department. The Tribunal ruled that actual rent received cannot solely dictate the annual value without considering the past history of assessments. This case underscores the significance of adhering to established practices unless substantial new evidence is presented, ensuring fair taxation practices. It reflects ongoing discussions about reasonable rental values and the complexities involved in tax assessments, making it a critical reference point in tax law. Keywords include 'Income Tax Appellate Tribunal', 'annual letting value', 'Income Tax Act', 'reasonable rent', 'tax assessment', and 'burden of proof'. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan,
Manzurul Haq
|
| Lawyers |
Mohammad Farid,
M.D. Gangat
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1988 SLD 5,
1988 PTD 22
|
| Other Citations |
ITA No.715 and 716/KB, 1987 P T D 503,
C.I.T. v Sind Club (1979) 39 tax 30 (Trib.),
(1964) 9 Tax 90 (Trib.),
AIR 1962 S C 151,
AIR 1971 S C 353,
ITR 435,
S C R 390,
ITR 700,
(1979) 39 lax 30 (Trib.) 1
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
9(2)
|