TILAK RAJ Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE following question of law has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Amritsar Bench :

(2.) THE assessee and his brothers are co-owners of a residential house in Tagore Colony, Mall Road, Amritsar. The house was in self-occupation and was never let out to a tenant for the assessment year 1975-76. The gross annual letting value of half share in the house relating to the assessee was estimated by him at Rs. 3,000 which was enhanced by the Income-tax Officer to Rs. 8,400, On appeal, the Appellate Assistant Commissioner reduced it to Rs. 7,200 and on further appeal by the assessee to the Tribunal, the annual value was maintained. In maintaining the annual value, the Tribunal rejected the argument raised on behalf of the assessee that the annual value has to be determined in accordance with the provisions of the East Punjab Urban Rent Restriction Act, 1949 (hereinafter called "the Act"), on the reasoning that the house was never let out and the standard rent should be determined only by the Rent Controller under the Act and the same not having been determined, the open market rent was payable, it followed the decision of the Supreme Court in M. M. Chawla v. J. S. Sethi [1970] 2 SCR 390.

(3.) TO our mind, the matter is fully covered by the later decisions of the Supreme Court and one of our court. In Dewan Daulat Rai Kapoor v. New Delhi Municipal Committee [1980] 122 ITR 700, the Supreme Court observed as follows (headnote) :