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TMI Blog2004 (10) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... deducted from the rent received/receivable are specified in section 23 and therefore Assessing Officer has rightly deducted the municipal taxes and did not deduct other expenses. ( b) On the facts and in the circumstances of the case and in law, the learned CIT(A) erred to appreciate that the assessee is not entitled for any deduction other than what have been specifically mentioned in section 24 and therefore Assessing Officer has rightly disallowed other expenses such as maintenance charges, lease rent etc. 3.On the facts and in the circumstances of the case and in law, the decision's followed by the CIT(A) are distinguishable on facts and therefore they are not applicable to the instant case." In the Cross Objections filed by the assessee, as stated by the learned Counsel of the assessee that these are only supporting the order of CIT(A). In the present case, the assessee has been assessed as an Association of Persons. Its source of income is rent earned by it from the Bank of India in respect of a premises situated at Nariman Point, Bombay. The computation as submitted by assessee for the respective years as per pages 19 & 21 are as under :- "A.Y. 1997-98 Computation of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The computation of income made by the Assessing Officer was agitated in the appeals filed before the CIT(A) who has deleted the addition. The revenue is aggrieved hence in appeal. As mentioned earlier, the C.Os have been filed to support the order of CIT(A). 2. The above-mentioned property is subject to rent agreement entered into between the assessee and Bank of India. The copy of the said agreement is in the shape of letter issued by the Bank of India dated 2nd June, 1981 which is placed at pages 16 to 18 of the paper book. The relevant clauses are 3, 4 and 14 which are reproduced below: "(3) Rent: Rs. 13.90 per sq.ft. per month for the 3rd floor area inclusive of ground rent, property tax, municipal Government and other rates, taxes, cesses and assessments and all other outgoings but excluding water and electricity charges. Terrace area on the 3rd floor free of any charges whatsoever. (4) Taxes and Outgoings: All existing municipal and Government and other rates, taxes, cesses, assessments and outgoings to be borne by you. Any further increase in taxes and any new taxes, rates, assessments in respect of premises to be leased to us after the date of occupation by us of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,597,962 Assessment year 1998-99 As per As per the Assessing CIT(A) Officer Rent recd. 2,499,665 2,499,665 from bank Car parking 18,000 0 received from bank Water 44,958 0 charges received from bank Municipal 603,579 3,166,202 0 2,499,665 and other charges paid by bank to assessee Less : Municipal 524,288 (as allowed 524,288 taxes by Assessing Officer) As per Assessing Officer As per the CIT(A) &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent under the rent control legislation. If this contention of assessee is correct, then the house property income has to be determined under the provisions of section 23(1)(b), otherwise the house property income has to be assessed under section 23(1)(a). Section 23(1)(a) & (b) being relevant provisions applicable for deciding the present controversy are reproduced below :- "23. (1) For the purposes of section 22, the annual value of any property shall be deemed to be- (a )the sum for which the property might reasonably be expected to let from year to year; or (b)where the property or any part of the property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a), the amount so received or receivable;" It will be relevant to reproduce below the observations of jurisdictional High Court in the case of CIT v. J.K. Investors (Bombay) Ltd. [2001] 248 ITR 7231 (Bom.) relating to the above provision of Income-tax :- "In this matter, we are required to consider the scheme of taxation of income from house property. Section 22 says that the measure of income from house property is its annual value. The annual ..... X X X X Extracts X X X X X X X X Extracts X X X X
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