THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 737 of 2014 DATE: 31.12.2014 Between:
The Commissioner of Income Tax(Central), Hyderabad.
… Appellant And Sainath Estates (P) Ltd., Hyderabad.
… Respondent This Court made the following:
THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 737 of 2014 Judgment: (per Hon’ble Sri Justice Sanjay Kumar) This appeal by the Revenue in relation to the assessment year 2003-04 is directed against the judgment and order dated 23.10.2009 passed by the Income Tax Appellate Tribunal, Hyderabad Bench-A, Hyderabad, in connection with the issue raised in the following suggested question of law.
“ Whether on the facts and in the circumstances of the case the Tribunal is correct in law in directing the assessing officer to follow return on investment method by applying the rate of 7% of the assessee’s investment in the property ignoring the provisions of Section 23 of Income Tax Act amended with effect from 1.4.2002 ?”
Perusal of para-8 of the order passed by the Tribunal demonstrates that the Tribunal merely confirmed the rate of 7% for determining the annual value. But, it was of the opinion that as the property in question was a heritage property and as it was burdened with various depressing factors, the said rate should not be applied to its market value but to the actual investment by the assessee for the acquisition thereof.
We find this reasoning to be perfectly valid and no question of law, much less a substantial question of law, is made out for interference.
The appeal is accordingly dismissed.
In consequence, pending miscellaneous petitions shall also stand closed. No costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J Date: 31st December, 2014 pnb