COMMISSIONER OF INCOME TAX Vs. G RAMESAN

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal drew up a common statement of the case in two R. As. relating to the assessment years 1984-85 and 1985-86 referring the following questions for each year for the opinion of this court :

(2.) LEARNED standing counsel has pressed only question No. 1 before us and not the other questions. The assessee let out certain immovable property to Rajadhani Hotels and Tourist Enterprises (P.) Ltd.--a company of which the assessees are the shareholders. The said property was let out at the rate of Rs. 72,000 per annum. The Assessing Officer took the view that the said property is under the occupation of as many as five tenants on behalf of the company which is charging rent from the said tenants which comes to Rs. 1.60 per square feet. As against this, the rent charged by the assessees from the company is much less. Therefore, the Assessing Officer held that the annual value of the property in question would be determined under Section 23(1)(a) of the Income-tax Act, 1961, which states that the annual value of any property shall be deemed to be the sum for which the property might reasonably be expected to be let from year to year. The Assessing Officer accordingly determined the annual value of the property.

(3.) SO far as questions Nos. 2 and 3 are concerned, they are returned unanswered as the controversy involving in them is not pressed by learned standing counsel.