COMMISSIONER OF INCOME TAX Vs. PARASMAL CHORDIA

JUDGEMENT

(1.) THE question of law referred to this Court by the Tribunal under s. 256(2) of the IT Act, 1961 (hereinafter referred to as 'the Act') in relation to the asst. yr. 1977-78, in this tax case reference, preferred by the Revenue against the respondent assessee, who is an individual, is as follows :

(2.) THE only dispute before the Tribunal was whether the assessing authority was right in determining the "annual value" spoken to in s. 23(1)(a) of the IT Act, 1961, of the house property at No. 38-C, Mount Road, Madras, at Rs. 1,22,850 on the basis of the municipal valuation, as against Rs. 1,18,582, returned by the assessee as the actual rent received by him. THE AAC allowed the appeal by the assessee, holding the abovesaid Rs. 1,18,582 as the said annual value under s. 23 of the Act. THE appeal by the Revenue to the Tribunal was dismissed and hence this tax case reference.

(3.) WE have considered the rival submissions in the light of the abovesaid cls. (a) and (b) of s. 23(1) and the relevant decisions. Sec. 23(1) of the Act, after the abovesaid amendment w.e.f. 1st April, 1976, runs as follows : (The provisos and Explanations thereto are not extracted since they are not relevant for the purpose of this case).