9911796707
TMI Blog1991 (10) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment was completed under s. 143(3) on 28th Nov., 1984 allowing the assessee's claim for 1/6th of the rent for repairs. While making the assessment for the subsequent assessment year, the ITO noticed the above clauses of the agreement and consequently reopened the assessment. After completing the normal procedure, he imposed the said penalty observing that the assessee had not appealed against the reassessment and that the said terms of the lease were within the knowledge of the assessee and so the assessee could not claim the deduction. 4. The Commissioner, following his decision in the quantum appeal for the subsequent asst. yrs. 1984-85 and 1985-86 wherein he held that deduction for 1/6th for repairs was admissible, cancelled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich showed that major building repairs had been undertaken by that society and each member was required to contribute Rs. 40,000 and requesting payment of Rs. 5,000 at the earliest. Another letter from the society to the members shows that the building needed urgent repairs to the Chhajas and waterproofing and the first stage of the work was estimated to cost Rs. 12,00,000. The Advocate submitted that the assessee was under bona fide impression, that since the responsibility for repairs of the building was on the lessor-assessee he was entitled to claim 1/6th for repairs under s. 24(1)(i)(a). He, therefore, urged that the assessee could not be said to be guilty of concealment of income or furnishing inaccurate particulars thereof. 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilding is necessarily a part of the property which is let out. Thus, it can well be argued that cl. (a) and not (b) of s. 24(1)(i) which is applicable. Lastly, the question of bona fide belief of the assessee cannot be considered merely in the light of the distinction between the agreement with the tenant as per the IT Act and the agreement with the co-operative society. After all, the assessee s case is very simple. He has to share part of expenses incurred by the co-operative society for the repairs outside the flat. The tenant cannot use the flat conveniently without the assessee-landlord undertaking the responsibility for maintenance and repairs to the premises outside the flat. The assessee has given details regarding the expenses incu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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