COMMISSIONER OF INCOME TAX Vs. DALMIA R DECD

JUDGEMENT

(1.) THE question referred to us for the asst. yr. 1961-62 is in the following terms :

(2.) WE have also been referred to the judgment of the Supreme Court in Mrs. Sheila Kaushish vs. CIT (1981) 24 CTR (SC) 351 : (1981) 131 ITR 435 (SC) wherein it was held that the annual value had to be determined under the IT Act on the basis of the standard rent and if it was not done then the assessment was erroneous. WE may point out that this holds true only till the amendment made subsequently in the provisions of ss. 22 and 23 of the IT Act, 1961. As the present case is an old case arising under the Indian IT Act, 1922, the judgment would have full force and accordingly the standard rent would determine the annual value for the purposes of the income-tax, Similarly, the Supreme Court has held in Dewan Daulat Rai Kapoor vs. New Delhi Municipal Corporation (1980) 122 ITR 700 (SC) that the valuation for the purposes of the Municipal Act has also to be based on the self-same standard rent. This means that the Supreme Court by two separate judgments has made the basis of the valuation the same to the income-tax law and to the Municipal Act. The result is that we have no difficulty in answering the question referred to us which is whether the value adopted for municipal valuation has also to be adopted for the purposes of income-tax. On the above reasoning, these two have to be the same.