COMMISSIONER OF INCOME TAX Vs. M A MURUGAPPAN

JUDGEMENT

(1.) IN these reference applications, the Revenue seeks direction from this court to the Tribunal to refer the following question of law as arising out of the order of the Tribunal."Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the annual value of the property No. 4, Chittaranjan Road, Madras-18, should be taken at Rs. 12, 000 against Rs. 36, 000 adopted by the INcome-tax Officer ?"

(2.) THE assessee in this case along with two others owns a property known as "Laurels" in Chittaranjan Road, Madras. For the assessment year 1976-77, the assessee, while computing his property income, had adopted his share of annual letting value of the building at Rs. 4, 000, being the 1/3rd share of the total annual letting value of Rs. 12, 000, adopted for the whole building.

(3.) ADMITTEDLY, in this case, the house has not actually been let out, but it is used for the owner's residence. Perhaps taking into account this circumstance, the municipal authorities had fixed the annual letting value at Rs. 9, 828. Since there is no material to indicate that the said annual letting value was fixed long before the improvements were made to the house, the Tribunal has rightly assumed that the municipal authorities while fixing the annual letting value for the building in the year in question should have taken into consideration the improvements also. Since it is not possible to say that the annual letting value fixed by the municipal authorities is not relevant for the purpose of determining the annual letting value under section 23 of the Income-tax Act, we are not in a position to say that the Tribunal went wrong in accepting the municipal valuation. Therefore, no question of law arises out of the order of the Tribunal. These petitions are, therefore, dismissed.