COMMISSIONER OF INCOME TAX Vs. RUCHI PROPERTIES LTD.

JUDGEMENT

(1.) THE appeal has been preferred on the following two questions : "(i) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in setting aside the annual letting value of flats determined by the AO by overlooking the relations between the parties, conduct of the parties in referring the matter to arbitration without there being any dispute and the tenancy agreements entered into by and between the parties, which clearly justify the action of the AO in determining the annual letting value of the flats (ii) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in setting aside the annual letting value determined by the AO in respect of garden space, foyer and driveway at Rs. 66.04 lakhs being cost of funds given at the interest -free deposit when the said garden space, foyer and driveway was let out as separate

(2.) INSOFAR as first question is concerned, there is finding of fact recorded that the actual rent received is more than municipal value. In that light of that matter, the question as framed would not arise.

(3.) INSOFAR as second question is concerned, we note that in the similar case in CIT vs. Cygnus Negri Investment (P) Ltd. the assessee. That matter was taken in appeal to this Court where the appeal was summarily rejected. [IT Appeal no. Court. That judgment is reported in (2002) 253 ITR (St) 78. In the light of the above, in our opinion, the question of law as framed would not arise. Consequently appeal dismissed.