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By Vijay Kumar

Income Tax

Income Tax - Standard rent of property can be determined by applying a rate of 10 per cent to base value: ITAT Spl Bench

Standard rent of property can be determined by applying a rate of 10 per cent to the base value:. As such, taking into consideration all the facts of the case as, we are of the view that standard rent of the property in question belonging to the assessee can be determined by applying a rate of 10 per cent to the base value i.e. aggregate amount of the actual cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction. Since the said base value as taken while determining standard rent in the year 1971 was Rs. 4,15,267 (i.e. Rs. 31,145 x 100/7.5), the standard rent of the property by applying the rate of 10 per cent to the said base value in accordance with the principles laid down in s. 6 of the Delhi Rent Control Act, 1958 would come to Rs. 41,527. As the standard rent so determined at Rs. 41,527 is lower than the ALV of the relevant portion of the property declared by the assessee at Rs. 52,540 on the basis of the municipal valuation fixed by NDMC, we hold that no adjustment/ addition to the ALV of the property declared by the assessee as done by the AO is called for. We, therefore, agree with the view taken by the Tribunal on this issue in assessee's own case for asst. yrs. 1988-89 and 1989-90 accepting the ALV of the property declared by the assessee which has been followed by the AO himself subsequently in asst. yrs. 1995-96, 1996-97 and even in asst. yr. 2000-01 and onwards.

Service Tax

video tape production - whether an activity comes within purview of tax net has to be decided by authorities only, not High Court in writ petition: Madras High Court

If the activity of the appellant does not come within the purview, it is well open to the appellant to explain the activity carried on by the appellant so as to have a finding to that effect. It is well settled and well established principle that a classification or whether an activity comes within the purview of the tax net has to be done by the authorities only, which cannot be determined on the basis of an affidavit and counter affidavit in a proceedings under Article 226 of the Constitution of India.

Central Excise

Dealers providing after sales service to customers and being reimbursed by manufacturer; no cause for adding this amount in AV even under new Section 4: Tribunal.

A duty of Rs. 1.57 Crores was confirmed against the assessee along with interest and penalty. The duty demand has been confirmed against the appellant in respect of clearances of motor cycles made by them to their dealers during the period from 01/07/02 to 31/12/03 on the ground that while during this period, as per the appellant's agreement with their dealers, the dealers were providing free after sale service to the customers for which the dealers were being reimbursed by the appellant @ Rs. 70/- per service, this amount was not being added to the assessable value, resulting in short payment of duty.

See our columns tomorrow for the judgements