9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (5) TMI 705 - AT - Income TaxDetermination of Annual Letting Value (ALV) - Held that - It becomes apparent that the rateable value of the property in the instant case be considered for determining the ALV of the property, as has been accepted by the AO himself in the succeeding year. The further contention raised by the assessee that deduction should be allowed towards municipal taxes is not acceptable in view of the reason that such taxes were paid by the tenant and not the assessee. We, therefore, modify the impugned order to this extent. Determination of ALV - Held that - For the immediately preceding assessment year 2004-05 we have held that the ALV of the property be taken at ₹ 11,13,700/- without deduction of any municipal taxes which were borne by the tenant and not the assessee. In this view of the matter, the impugned order is upheld and the ground raised by the assessee is dismissed. Denial of deduction towards education cess - Held that - Education cess is nothing but additional surcharge. Since such surcharge or education cess is part of tax, the same, in our considered opinion, cannot be allowed as deduction. Such amount clearly constitutes part of tax which falls within sec. 40(a)(ii). We, therefore, uphold the impugned order on this score. Disallowance u/s.14A - Held that - We are unable to find any reason for interfering with the impugned order on this issue because the ld. CIT(A) has directed the AO to follow the mandate of the judgment of the Hon ble jurisdictional High Court in the case of Godrej & Boyce Mfg. Co. Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT ) on some reasonable basis. We uphold the impugned order but clarify that in no case the disallowance to be made by the AO pursuant to the order of ld. CIT(A) should exceed the original disallowance made by him. This ground is, therefore, disposed of accordingly.
Issues Involved:
1. Determination of Annual Letting Value (ALV) for assessment years 2004-05 to 2007-08. 2. Denial of deduction towards education cess for assessment year 2005-06. 3. Disallowance of expenses under section 14A for assessment years 2006-07 and 2007-08. A.Y. 2004-05: The issue raised is against the determination of ALV at Rs. 18 lakhs. The assessee contended that notional interest on the security deposit should not be included in ALV. The tribunal held that notional interest on the deposit cannot be added to ALV based on legal precedents. The ALV was adjusted to Rs. 11,25,000 considering the rateable value determined by the New Delhi Municipal Committee. The tribunal also rejected the claim for deduction towards municipal taxes paid by the tenant. Thus, the appeal was partly allowed. A.Y. 2005-06: The ALV determination issue was similar to the previous year. The tribunal upheld the ALV at Rs. 11,13,700 without allowing deduction for municipal taxes borne by the tenant. Another issue was the denial of deduction towards education cess, which was disallowed as it was considered part of tax under section 40(a)(ii). Therefore, the appeal was dismissed. A.Y. 2006-07: The ALV determination issue was similar to previous years, and the tribunal directed the AO to adopt ALV at Rs. 11,13,700. The tribunal also addressed the disallowance of expenses under section 14A, upholding the order based on the judgment of the jurisdictional High Court. The disallowance was limited to the original amount determined by the AO, resulting in a partial allowance of the appeal. A.Y. 2007-08: Similar to previous years, the ALV determination issue was raised, and the tribunal directed the AO to compute the income from house property based on earlier directions. The disallowance under section 14A was also addressed, with the tribunal upholding the order based on the High Court's judgment and ensuring compliance with the same. Consequently, the appeal was partly allowed for this year as well. In summary, the tribunal addressed the issues of ALV determination, denial of deduction towards education cess, and disallowance of expenses under section 14A across multiple assessment years, providing detailed analyses and legal interpretations for each issue. The tribunal's decisions were based on legal precedents, statutory provisions, and factual circumstances specific to each assessment year, resulting in partial allowances and dismissals of the appeals as appropriate.
|
