Judgment

BHAGWATI, J.:- These appeals by special leave raise a common question of law relating to the determination of annual value of a building for the purpose of chargeability to tax under the Indian Income-tax Act, 1961 where the building is governed by the provisions of the Rent Control legislation but the standard rent has not yet been fixed. The facts giving rise to these appeals are few and may be briefly stated as follows;

The assesseee constructed a warehouse in Delhi sometime in 1961 at a total cost of Rs. 4,13,000. The warehouse consisted of two portions on the ground floor, one on the north and the other on the south and also a mezzanine floor and a first floor. On 19th March, 1962, the assessee let out the whole of the first floor to the American Embassy at the rent of Rupees 5,810 per month and subsequently on 1st April, 1964 she let out the northern portion of the ground floor together with the mezzanine floor to the same tenant at the rent of Rs. 6,907 per month and on 7th December, 1964 the northern portion of the ground floor was let out to the same tenant at the rent of Rs. 6,640 per month. Thus the entire warehouse was let out by the assessee to the American Emba