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TMI Blog1991 (6) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that since the tenant has undertaken to bear the cost of repairs, sub-cl. (b) of cl.(i) of s. 24(1) would be applicable. He found that in the present case, rent received and the annual letting value is the same i.e. 2,760 per month and therefore, excess of ALV over rent payable is nil and, accordingly, no deduction was allowable under s. sub-cl (b) of cl.(i) of s. 24(1). 2. The assessee appealed to the Dy. Commr.(A), before whom it was Submitted that ultimate responsibility of repairs was with the owner of the property, who has to bear and incur the expenses for major repairs It wall thus, submitted that the assessee was entitled to deduction on account of repairs at 1/6th of the annual letting value. The Dy. Commr.(A) in his appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, to the ITO in response to his letter dt. 6th Oct., 1983. It was next contended on behalf of the assessee that in the wealth-tax assessment, value of the property has been determined in accordance with r.1BB of the WT Rules and while doing so deduction on account of repairs equal to 1/6th of the letting value has been allowed. 4. Learned DR on the other hand fully supported the impugned orders of the authorities below. It was contended that the documents filed by the assessee clearly showed that cost of repairs was to be borne by the tenant and not by the assessee. 5. I have considered the rival submissions as also the facts on record. The letter of the tenant addressed to the ITO and which is dt. 20th June, 1983, clearly shows that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tenant, the tenant undertakes to compensate the same or to replace the damage. It is noteworthy that this clause clearly excluded the damage caused to the building on account of normal wear and tear. This means that if any repairs were required to be carried out on account of natural wear and tear the cost of such repair would not be borne out by the tenant. Thus, it is not correct to say that the tenant undertook to bear cost of repairs of the building. It was only when any damage was caused to the building due to neglect on the part of the tenant that the tenant was liable to compensate the owner for the damage so caused or to restore the building to its original condition at its own cost. True the terms and conditions of the agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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