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TMI Blog2001 (12) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... section 24(1) of the Act. 2. The house properties belonging to the assessee are given on lease to the Banks. These properties are situated in the Co-operative Societies and the assessee is required to pay Society s maintenance charges which were claimed as deduction by the assessee. The reason for such claim was that the premises are exclusively used for the purpose of earning rental income and the Society s maintenance charges paid are allowable deduction from income from house properties under section 24(1) of the Income-tax Act. The Assessing Officer observed that the assessee had already been allowed deduction @ 1/5th of the property income for repairs and maintenance, hence no other deduction like Society s maintenance charges i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available at page-47 of the Paper Book) wherein there is no bifurcation of the gross rent given. The ld. counsel stated that even where no bifurcation of the gross rent was given expressly, there was an understanding that a portion of the rent will be utilised towards payment of Society s maintenance charges etc. The ld. counsel further contended that it is not a case of specific deduction as provided by the statute but it is a case based on theory of real income principle. It was stated that as per the agreement or as per the understanding the assessee has to part with a portion of the gross rent towards Society s maintenance charges etc. Reliance was placed by the ld. counsel on the following decisions : (1)Varma Family Trust v. Sixt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) of the Act the outgoings for earning the rental income have to be deducted. Ld. Judicial Member has also referred to the decision of the Hon ble Bombay High Court in the case of CIT v. Khandelwal Mining Ores (P.) Ltd. [1983] 140 ITR 7012. Upon careful consideration of the matter, we are of the view that the decision in the case of Varma Family Trust was impliedly overruled by the Hon ble Bombay High Court in the following decisions : (i) CIT v. J.K. Investors (Bombay) Ltd. [2001] 248 ITR 7231 . (ii) CIT v. Gopal Krishna Suri [2000] 113 Taxman 707 . 4.1 In the case of J.K. Investors (Bombay) Ltd. (supra), the Hon ble Bombay High Court observed that in a case where section 23(1)(b) is applied, there is no question of takin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest is not to be taken into consideration under section 23(1)(b), Society Maintenance charges cannot be deducted under that section by extending the same logic. In the case of H.G. Gupta Sons (supra), the Hon ble Delhi High Court categorically held that under section 24 of the Act stamp duty charges borne by the lessor are not allowable as deduction in computing the income under the head house property . The court observed that section 24 of the Act uses the word namely which shows that the heads of expenditure whereof deduction can be claimed in the computation of income from house property are exhaustive; if a particular type of expenditure is not specifically proved to be deductible, deduction thereof cannot be claimed from ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the gross rent received by the assessee included Society s Maintenance Charges. For the repairs and maintenance of the building separate deduction @ 1/5th of the property income has already been allowed by the Assessing Officer. Therefore, no further deduction for the repairs or maintenance charges can be allowed. The ld. counsel of the assessee has relied on the decision of Delhi Bench of the ITAT in the case of Sir Sobha Singh Sons (P.) Ltd. (supra). We find that in that case the issue was not decided on merits and it was held that though deductions on account of salaries paid to Watchmen, Sweepers, Malis, Pump Operators and Manager are not admissible under the existing provisions, yet the same were allowed to maintain consistency as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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