9911796707
TMI Blog1982 (7) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the house properties at 17 and 18, Gurusaday Road, Calcutta, and at 3/1, Raja Santosh Road, Calcutta, no account should be taken of the expenditure incurred in the purchase of air-conditioners, furniture and fans for the use of the tenants ? " The assessee owns three properties situated at 17 and 18, Gurusaday Road, Calcutta, and 3/1, Raja Santosh Road, Calcutta. These properties have been let out to the members of the Birla family at the annual rent of Rs. 7,200 for the first two properties and Rs. 5,400 for the third property. The rentals were considered low by the ITO. The matter, for the first time, came up before the AAC in the assessment years 1957-58 to 1959-60, in Appeal Nos. 206 to 208/C/II/62-63, vide his order dated 30th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the reasonable bona fide annual value for each of the above two properties could be taken at Rs. 30,000 and that it should be increased by Rs. 1,200 per annum in each of the subsequent years. For the property at Raja Santosh Road, he fixed the annual value of Rs. 22,500 in the same assessment year 1962-63, and increased it by Rs. 900 per annum in the subsequent years. This procedure was adopted in the assessment years 1962-63 to 1965-66, and no separate addition was made for any of the improvements. The net valuations were of course arrived at deducting the municipal taxes wherever available and 1/6th of the amount for repairs. In the assessment year 1966-67, the ITO found that the municipal valuation had been revised. He, therefore, to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by 1/9th thereof. To the above should be added 1/6th of the expenditure incurred from year to year for the improvement of the property. This expenditure should be determined after deducting from it the amount of statutory repairs and the amount spent for the purchase of air-conditioners, furniture and fans. The Tribunal in coming to its conclusion observed, inter alia, in its order as follows: " We entirely agree with the above views, which as mentioned above, are also supported by the decided English authorities. We, therefore, hold that the value of the air-conditioners, furniture and fans cannot be included while working out the improvement to the property. Since it is the responsibility of the landlord to maintain the buildings in pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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