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Judgment
The petitioner seeks reference of the following three questions to this Court:
"1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that ALV was required to be fixed by taking into account the provisions of Rent Control Act and on that basis rent charged by the assessee from its tenant would be the ALV for the purpose of computation of income under the head ''Income from house property''?
Whether, on the facts and in the circumstances of the case, the Tribunal is justified in not approving the fixation of ALV on the basis of comparable cases and keeping the benefit derived by the assessee from the interest free security of Rs. 31.50 lakhs ?
Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that advertisement expenses incurred by the assessee were allowable as revenue expenditure and did not form part of the stock-in-trade?"
In our opinion question No. 3 is a pure question of fact and no question of law arises.
On the facts and in the circumstances of this case, the question relating to fixation of accrual letting value would be a question of law because that can be termed as the first letting as per the agreement between the parties and interpretation of documents is also involved. Furthermore, what is the effect of the receipt of interest-free security from the tenant is also to be considered. We, therefore, direct the Tribunal to state the case and refer the following question to this Court:
"Whether, on the facts and in the circumstances of this case, was the Tribunal right in coming to the conclusion that the annual letting value of the property in question should be fixed at the rate of Rs. 3.50 per sq. ft.?"
There will be no order as to costs.