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TMI Blog1985 (3) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... he letting out was by a lease deed dated 1-8-1978. The letting out was for a period of 11 months. Clause (1) of this deed is relevant for our purpose and is reproduced below : " That lessee shall pay a monthly rent of Rs. 3,250 (Three-thousand two hundred and fifty only) and Rs. 1,250 towards the installation of booster pump and other fixtures to the lesser for the premises and fixtures as above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviso (c) to section 23(1) of the Income-tax Act, 1961 (' the Act '). 2. The assessee appealed to the AAC with regard to the claim under proviso (c) to section 23(1). It was submitted before him that although the benefit was available to the residential unit only but it was not necessary that the property should have been let out for the purpose of residence. The AAC accepted this plea and direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l unit without actually examining the use to which it has been put or if it has been let out for a purpose other than residential and it still can be treated as a residential unit. Our finding, therefore, is that the property belonging to the assessee is not entitled to the relief under proviso (c) to section 23(1). The relief allowed by the AAC, is, therefore, directed to be withdrawn. 4. The n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Kerala High Court in Dr. P.A. Varghese v. CIT [1971] 80 ITR 180. He finally directed the ITO to recompute the income from property including the amount of Rs. 10,000, which he had assessed as income from other sources. 5. Here also, the department is in appeal before us. It was emphasised by the learned departmental representative that the AAC had erred and failed to appreciate the fact that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn times, a booster pump is necessary for a building without which it would remain incomplete or inhabitable. We, therefore, hold that the entire rent of Rs. 4,500 should be treated as income from the property. This was also the view taken by the Kerala High Court in the case referred to above. We do not attach any importance to the recitation in the lease deed, that might be for the convenience o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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