9911796707
TMI Blog2011 (6) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... t and also derives income from house property and other sources. The return was filed declaring a total income of ₹ 3,41,46,040/-. However, the assessment was completed at an income of ₹ 3,44,38,540/- including disallowance of deduction of brokerage paid, Society charges & municipal taxes from the income from house property and disallowance of part electricity expenses vide order dated 04- 09-2006 passed u/s. 143(3) of the I.T. Act, 1961 ("the Act"). On appeal, the ld. CIT (A), while confirming the disallowance made by the AO, dismissed the assessee's appeal. 3. Being aggrieved by the order of the CIT (A), the assessee is in appeal before us. 4. Ground no.1 is against the sustenance of disallowance of brokerage paid ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that u/s.24 a flat amount of 30% of annual value is allowed as deduction besides municipal taxes and hence no further allowance is permissible once a fictional deduction has been allowed along with allowance on account of specific items like municipal taxes etc., rejected the claim of the assessee. 9. At the time of hearing, the ld. counsel for the assessee, while reiterating the same submissions as submitted before the AO and ld. CIT(A), further submits that in view of the decisions cited before the AO, the deduction of municipal taxes & Society charges are allowable and hence the same be allowed. 10.On the other hand, the ld. D.R. supports the orders of the AO and the CIT(A). 11. We have carefully considered the submissions of the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des that the taxes levied by a local authority in respect of the property shall be deducted in determining the annual value for that previous year in which such taxes are actually paid, irrespective of the previous year in which the liability to pay such taxes was incurred by the owner. Under the existing provisions, this deduction was allowable only in respect of property which was in the occupation of a tenant. As per the amended provisions, however, the deduction is available in every case where annual value is determined under sub-section (1) including the case of a second self-occupied house not falling under sub-section (2) of the section." 13. In view of the above provision of law, we are of the view that the ld. CIT (A) was not jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO (1990) 37 TTJ (Del) 297 and the decision of the Bombay Bench of the Tribunal in the case of Blue Mellow Investment & Finance (P) Ltd. (ITA No.1 757/Bom/1 993 dt. 6th May 1993) were followed and it was held that the maintenance charges have to be deducted even while arriving at the annual letting value of the property under s. 23. Following the said order, we hold that the maintenance charges have to be deducted even while determining he annual value of the property under s. 23." 17. In Lekraj Channa vs. ITO (1990) 37 TTJ (Del) 297, it has been observed and held as under B~>>However, the other part of the expenditure which is for the maintenance of the building security of the building and to attend to the requirements of the tenants i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of any property is to be determined on the basis of actual rent received by the owner." 19. In the absence of any contrary decision placed on record by the Revenue, we, respectfully following the consistent view of the Tribunal, hold that the Society charges paid by the assessee in respect of the let out property are allowable while computing the annual letting value of the property under section 23 of the Act. This view also finds support from the recent decision of Hon'ble Delhi High Court in CIT vs. R.J. Wood P. Ltd. (2011) 334 ITR 358 (Delhi) wherein it has been held that the maintenance and other charges paid by the assessee were deductible from the rent while computing the annual letting value. Accordingly, the AO is directed to al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Having carefully heard the submissions of the rival parties and perusing the material available on record, we find that there is no dispute that the residence of the assessee is also used for office purposes. The assessee allocated the total electricity expenses of ₹ 2,41,350/- in the proportion of 25% being personal and 75% for office purposes. Per contra, the AO has considered the personal use of electricity at 50% and hence he made disallowance of ₹ 60,337/-. In the absence of any contrary material placed on record by the Revenue to show that conferences with the producers & directors were not held at the residence of the assessee for the purpose of his profession or part of the residence was not used for business purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
