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TMI Blog2004 (8) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... who was residing with his parents in B-76, Vasant Vihar, New Delhi. 3. Briefly stated the facts are that the assessee is deriving income from property, business and other sources for which the assessee filed its return of income at Rs. 17,30,820. The Assessing Officer noticed that Master Pulkit Seth, minor son of the assessee. Shri Deepak Seth owned (1) flat No. 308A at Raheja Vihar, Bombay (2) at Flat No. F-92 DLF Qutab Enclave and (3) at Sushant Lok, Gurgaon and (4) Flat at D-301, Bombay. Thus the assessee was asked to explain as to for what purpose the said properties were used and why no rental income was shown therefrom in the return. The Assessing Officer after having considered the explanation of the assessee made the addition t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D-301 Gautam Complex, Bombay has been shown by the assessee at Rs. 91,941 cost of which has been shown by the assessee at Rs. 10,86,666. Hence, the ALV of flat at Sushant Lok whose cost has been shown by the assessee at Rs. 10,63,684 is reasonable at Rs. 90,000." 4. On appeal the learned CIT(A) has held that even if income of the minor has been clubbed in the hand of the assessee, the deduction of self occupied property should be granted from the income from house property if the claim is made. Further, as per section 23(2), the exemption in the hands of the owner has to be granted even if the income has to be clubbed. Hence, he has held that Assessing Officer should accept the claim of granting the exemption for the self occupied prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Gujarat in the case of K.D. Thakkar v. CIT [1979] 120 ITR 190 wherein their Lordships have held that the wife who had constructed the house through the funds provided by her husband and consequently her income was includible in the income of her husband in view of the provisions of section 64, she would be entitled to exemption under section 23(2) notwithstanding her income was clubbed with the income of the husband. He has further pointed out that the similar view was taken by the Hon ble Madras High Court in the case of R. Ganeshan v. CIT [1965] 58 ITR 411 . Learned counsel has further submitted that use of a house for residential purpose does not require a compulsory house in that use and it only requires that house should be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner for purposes of his residence and under the proviso to sub-section (2), the maximum value of income from house property which is occupied by the owner himself is limited of 10 per cent of his total income. Section 64 provides for inclusion of income of spouse, minor child, etc., in the income of an individual in certain cases. Section 64 and section 23(2) operate in different fields." 9. Section 23 of the Act provides for the mode of computation of annual value of the property which is broadly deemed to be the sum for which the property might reasonably be accepted to let out from year to year, or where the properties let out and the annual rent received or receivable by the owner, subject to the reduction which has been provid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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