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2012 (11) TMI 889 - CALCUTTA HIGH COURTDetermination of annual value - income from house property - Whether surcharge of the Municipal Tax was part of the question and/or annual value for the purpose of Section 23(1) of the Income Tax Act – Held that:- When commercial surcharge collected is by the owner assessee of the house it becomes part of rent - moment the commercial surcharge is recovered irrespective of the provisions of the agreement entered into by and between the landlord and tenant it immediately become exigible to tax as rental income from house property for agreement binds the parties thereto and it becomes irrelevant the moment it is found to be in conflict with legal provision on the subject -If the argument of Mr. Khaitan is accepted that Commercial surcharge cannot be treated as receipt by way of rent as income from house property, and if it is withheld and not deposited then the very object of imposition of Commercial surcharge under KMC Act will be frustrated until the same is recovered - surcharge of the Municipal Tax was part of annual value for the purpose of Section 23(1) of the Income Tax Act
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