Annual Letting Value (ALV) for purpose of s 23 — Once the property is outside the purview of the Delhi Rent Control Act, 1958, the ALV of the property cannot be determined with reference to the standard rent determinable under the Delhi Rent Control Act and rateable value, if correctly determined under the municipal law, can be taken as the ALV under s 23(1)(a) as held by DelHC in CIT v Fizz Drinks Ltd — In favour of: Others; ITA No 412/2005.
Notional interest on interest-free security cannot be taken as determinable factor to arrive at fair rent.
The matter was remitted to the AO to determine the ALV of the property, considering the decision of the Full Bench in the case of Commissioner of Income Tax v Moni Kumar Subba.
Decided on: 23 November 2011.
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