Law:

Section:

Section 23 of the Income-tax Act, 1961 - Income from house property - Annual value - Assessment years 1973-74, 1974-75, 1976-77 and 1977-78 - Assessee leased out her property on monthly rent basis to 'P' who was an employee of a firm in which assessee was a partner and getting a meagre amount as salary - Properties were let out for a period of one year on execution of lease deed and lease deeds were renewed year after year but same were not registered - Assessing Officer on finding that these agreements were not genuine, determined annual letting value of properties on basis of actual rent realized by 'P' from tenants and worked out income from properties accordingly - Tribunal on basis of finding that in one of agreements stamp paper was purchased on 26-11-1973 whereas recital mentioned date of execution of agreement as 5-8-1973 and there was much difference between rent which properties in question were capable of getting and rent fixed in agreements upheld Assessing Officer's order - Whether Tribunal was justified in holding that lease deed in question was not genuine - Held, yes - Whether since there was nothing on record to show what was standard rent determinable under provisions of Rent Control Act, Assessing Officer was justified in working out income from properties in dispute on basis of actual rent received by 'P' - Held, yes FACTS The assessee owned certain properties. During the assessment years in question, it was claimed by the assessee that since she was an old lady and unable to manage the properties, the entire properties were leased out on a monthly rent basis to 'P' who was an employee in the firm in which the assessee, her son and other relatives were partners. The properties were initially let out for a period of one year for which registered lease deed was executed. The lease deeds were renewed year after year but renewals were only for 11 months each and were not registered agreements. The Assessing Officer on finding that these agreements were not genuine, reopened the assessment of the assessee and determined the annual letting value of the properties on the basis of the actual rent realized by 'P' from the tenants and worked out the…

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