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TMI Blog1973 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... d second questions in the affirmative and the third question in the negative, all against the assessee - - - - - Dated:- 2-3-1973 - Judge(s) : R. L. GULATI., C. S. P. SINGH. JUDGMENT The judgment of the court was delivered by C. S. P. SINGH J.-The Income-tax Appellate Tribunal, Delhi Bench " A", has referred the following questions for our opinion : " (1) Whether, on the facts and in the circumstances of the case, the assessments for the years 1954-55, 1960-61 and 1961-62 were validly reopened under section 147(a) of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the provisions of section 24(1)(i)(b) of the Income-tax Act, 1961, were applicable ? (3) Whether, on the facts and in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer was confirmed by the Appellate Assistant Commissioner. The assessee thereafter appealed to the Tribunal. Before the Tribunal, the assessee contended that the assessment could not be reopened either under section 147(a) or section 147(b), in view of the fact that the assessee had given all the necessary particulars to the Income-tax Officer and he had determined the tax after considering the particulars furnished by it. It was further urged that the Income-tax Officer could not redetermine the annual letting value at a higher figure on the ground that the tenant had undertaken to bear the repairs as, according to the assessee, the expenditure incurred on repairs was relevant only for determining the deductions to be allowed from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee would not stand to gain, inasmuch as on the view it took, the assessee was not entitled even to the deduction of Rs. 4,000 granted by the Income-tax Officer. In respect of another contention raised by the assessee that, as the assessment had been reopened, the Income-tax Officer should have reconsidered the disallowance of expenses, which it had claimed in the original assessment, the Tribunal took the view that the allowance or disallowance of the expenses was concluded by the original assessment and the same could not be reopened on reassessment. Coming to the first question, we are of the view that there is no substance in the assessee's contention that the assessment could not be reopened under section 147(a) of the Income-tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the enquiry on which the Income-tax Officer had re-embarked on reassessment. The disallowance of these expenses in the original assessment had become final, and this being so, it was not open for the assessee to make a claim for these items of expenditure. The second question may now be considered. Section 24(1)(i)(a) and (b) may, for the sake of convenience, be quoted : " 24. Deductions from income from house property.-(1) Income chargeable under the head 'Income from house property' shall, subject to the provisions of sub-section (2), be computed after making the following deductions namely : - (i) in respect of repairs,- (a) where the property is in the occupation of the owner, or where the property is let to a tenant and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionate to the period during which such part is wholly unoccupied ; and (x) subject to such rules as may be made in this behalf the amount in respect of rent from property let to a tenant which the assessee cannot realise." It will be noticed that, so far as clause (a) is concerned, the owner is entitled to a deduction equal to one-sixth of the annual value, only in case the owner has undertaken to bear the cost of repairs. This clause does not come into play in case the tenant has to bear the cost of repairs. Clause (b) deals with the case where the tenant has undertaken to bear the cost of repairs. The deduction allowable under this sub-clause is, however, equivalent to an amount equal to the excess of the annual value over the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenant had undertaken to bear the cost of petty repairs only, and, so far as substantial repairs were concerned, they had to be undertaken by the landlord. In the view that we take, which we shall state shortly hereafter, it is not necessary to express any opinion on the question as to whether the word " repairs " as used in section 9(1)(i) or 9(1)(ii) of the 1922 Act, or by section 24(1)(i)(a) or (b) of the Income-tax Act, 1961, means substantial repairs and the quantum of deduction which the landlord gets depends on the question as to whether he has undertaken to carry out substantial repairs in the demised building. In the case of Rhodesia Railways Ltd. v. Income-tax Collector, Bechuanaland Protectorate, their Lordships of the Privy Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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