9911796707
TMI Blog2004 (10) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, water charges and municipal charges and other charges were the actual liability of the assessee or not. This factual aspect has to be examined as per the terms of agreement as well as keeping in view the factual aspect of the matter. We, therefore, consider it necessary to restore these appeals as well as Cross Objections to the file of Assessing Officer to determine the fact that whether expenses claimed by the assessee on account of car parking, water charges, municipal charges and other charges were the liability of the assessee and were outgoings from the assessee s rental income shown in respect of the property. If it is so, the same are rightly allowed by the CIT(A) as the assessee is entitled to get the same. The Assessing Officer will determine the house property income of the assessee in accordance with the above directions. We may point out here that the learned A.R. of the assessee also accepted that for the purpose of examining this factual aspect, the matter may be restored to the Assessing Officer. We order accordingly. The appeals filed by the revenue and Cross Objections filed by the assessee are considered allowed for statistical purposes. - I.P. BANSAL AND R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-owners income as shares are determined 17,24,117 Assessable Income Nil A.Y. 1998-99 Computation of Income: 1. Rent from Bank of India 208305.40 12 24,99,665 2.Water Charges 44,958 3.Car Parking 18,000 25,62,623 Less: Taxes Paid to Society 10,41,364 Less: Share of Bank of India 6,03,579 4,37,785 21,24,838 Less: 1/5th for Repair(claimed separately by co-owners) 4,24,968 16,99,870 To be taxed in hands of co-owners income as shares are determined 16,99,870 Assessable Income Nil As against the above computation, the Assessing Officer computed the income of assessee as under "(1) Income from house property: (A.Y. 1997-98) Rent recd. from Bank 24,99,665 Car parking recd. from Bank 18,000 Water charges recd. from Bank 44,958 Municipal charges and other charges paid by bank to Assessee 5,96,071 31,58,694 Less: Municipal taxes 5,12,462 Less: Rebate Allowed by Soc. @ 2% 10,249 5,02,213 5,02,213 Annual Letting Value... 26,56,481 Less: Deduction under section 24(1) 1/5th thereof 5,13,296 21,43,185" Income from house property: (A.Y. 1998-99) Rent recd. From bank Rs. 24,99,665 Car parking recd. from bank Rs. 18,000 Water charges recd. from bank Rs. 44,958 Mun. charges other charges paid by ba ..... 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) Annual 2,641,914 1,975,377 letting value Less : Deduction 526,383 395,075 under section 24(1) 1/5th thereof 2,113,531 1,580,302" 3. At the time of hearing, the learned D.R. contended that the Assessing Officer was right in disallowing car parking charges, water charges, municipal and other charges paid by the Bank to the assessee and had rightly computed the income of the assessee. As against the same, the learned CIT(A) has wrongly allowed the claim of the assessee as there is no provision in the Income-tax Act which permits such allowance. 4. On the other hand, the learned AR of the assessee referred to the agreement entered into between assessee and the bank and contended that excluding the existing municipal and Government and other rates, taxes, cesses, assessments and outgoings, any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be decided in accordance with section 23. Sub-section (1) of section 23, by virtue of the amendment with effect from the assessment year 1976-77, has two limbs, namely, clauses ( a ) and ( b ). Clause ( a ) states that the annual value is the sum for which the property might reasonably be expected to be let from year to year. Clause ( b ) covers a case where the property is let and the actual rent is in excess of the sum for which the property might reasonably be expected to be let from year to year. In other words, insertion of clause ( b ) by the Taxation Laws (Amendment) Act, 1915, covers a case where the rent for a year actually received by the owner is in excess of the lawful rent which is known as the fair rent or standard rent under the rent control legislation. The provisions of section 23(1)( a ) of the Income-tax Act apply both to owner-occupied property as also to property which is let out and the measure of valuation to decide the annual value is the standard rent or the fair rent. However, section 23(1)( b ) only applies to cases where the actual rent received is more than the reasonable rent under section 23(1)( a ) of the Act and it is for this reason that sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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