9911796707
TMI Blog1983 (8) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961. It relates to the income-tax assessment for the year 1978-79. The first ground of objection contained in ground Nos. 1 to 5 pertains to the computation of income from property under section 22 of the Income-tax Act, 1961 ('the Act'). The assessee held a property at Ranjitram Road, Gopipuram, Vaharwad, Ward No. 8, Surat, which was partly used for assessee's business and partly let out to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n no case be a loss. The AAC in the appeal preferred by the assessee on this point upheld the ITO's computation as correct. 2. In the appeal before us by the assessee on this point, it is contended that the departmental authorities are wrong in the computation of income adopted by them and holding that in no case there can be a loss under the head 'Income from house property' where any such prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 is, as stated therein, for the purpose of determining the annual value of any property contemplated under section 22, which is required to be charged under the head 'Income from house property' and such income from house property has to be computed by further deductions under section 24. Another submission made in this connection is that the second proviso to section 23(1) applies for determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the provisions of sections 22 to 24, it is clear that the deduction contemplated under section 23 in respect of any residential unit is only for the purpose of determining the annual value of the concerned property and in determining such annual value there cannot be a loss figure and at best it can be a nil figure only. The deduction under section 24, however, follow determination of the annua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere can be a deduction made under section 24 in excess of the annual letting value as determined under section 23 in respect of property other than the property meant for the owner's use and which cannot for reasons contemplated under section 23(3) be occupied by him. We, therefore, uphold the assessee's contention and direct the departmental authorities to modify the assessment accordingly. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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