| Case ID |
0f70154e-ddf9-4a3f-b9f3-d9acc9dc3dec |
| Body |
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| Case Number |
I.T.A Nos. 1772, 1773, 1832 and 1833 of 1965-66 |
| Decision Date |
Mar 20, 1967 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal ruled on the assessment of annual letting value for the years 1960-61 and 1961-62, determining that the actual rent receivable is a proper guide for computing the annual letting value of the property in question. The Tribunal found that the Karachi Municipal Corporation's valuation of Rs. 700 per month was significantly lower than the actual rent of Rs. 1,916 being paid by the tenant, Ford Foundation. The Tribunal upheld the principle that actual rent received is the most accurate reflection of the property's worth, ruling in favor of the assessee for the investment allowance under Section 15AA on Rs. 12,000. However, the appeal regarding the subsequent assessment years was dismissed, reinforcing the necessity of accurate property valuation in tax assessments. |
| Summary |
The case revolves around the Income Tax Appellate Tribunal's decision regarding the assessment of annual letting value under the Income Tax Act of 1922. The Tribunal analyzed the discrepancies between the actual rent received and the municipal valuation set by the Karachi Municipal Corporation. The key legal principles established in this case emphasize the importance of actual rent as a guiding factor for determining annual letting value, which is critical for accurate taxation. Furthermore, the decision highlighted amendments in the law that allowed for increased investment allowances, thereby benefiting the taxpayer. The ruling serves as a significant reference for future cases involving property income and tax assessments, emphasizing the need for fair valuations that reflect the true market dynamics of rental properties. This case is particularly relevant for professionals in real estate and taxation, as it outlines the legal precedents related to income tax assessments. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
NUR ILAHI, PRESIDENT,
M. T. SIDDIQUI, ACCOUNTANT MEMBER
|
| Lawyers |
Ali Athar, Advocate,
M. G. Hasan, PTS, D.R., for the Department
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1967 SLD 581,
(1967) 16 TAX 9,
1967 PTD 119
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922,
Income-tax Ordinance, 1979
|
| Sections |
15AA,
9(2),
19(2)(b)
|