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TMI Blog1996 (4) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... onable cause, we condone the delay and proceed to dispose of the appeals on merits. 3. The two common grounds raised by the revenue in all the three appeals are with regard to allowability of expenditure on account of service charges such as lift maintenance charges, generator charges, etc., against the income earned by the assessee under the head " Income from house property. " 4. The assessee-trust owned one building consisting of 12 flats all of which were let out on long-term lease of 21 years. As per the deed of tenancy, the assessee is duty-bound to provide and maintain lift, water pump, electricity of the staircase and common space area and also bound to provide a generator and maintain the same. The assessee has received the rent and also received deposits from the tenants which are subject to the above charge. As the additional amount is charged by the assessee for providing these additional facilities, the expenses incurred by the assessee in maintenance of the lift, generator, etc., are claimed as deduction against the composite rent. The Assessing Officer has disallowed the same. 5. In appeal before the first appellate authority, it was contended that these expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in directing the Assessing Officer to allow the expenses as deduction against the composite rent received by the assessee. 9. In the result, the appeals filed by the revenue are dismissed. 10. In the three appeals filed by the assessee, the only issue involved centres round the interpretation of the provisions contained in Schedule III to the W.T. Act, 1957. As has been mentioned earlier, the assessee has let out the building consisting of 12 flats on a long term lease of 21 years. As per the deed of tenancy, the tenants have the right to use the main entrance, lawn, road, childrens' playground, compound, lift, staircase and other common passage ways in the said building for the purpose of ingress to and egress out of the said flat. While computing the value of the said property, the Assessing Officer has applied Scheduled III of the W.T. Act, 1957 and valued the property by multiplying the net maintainable rent at 12.5 times as provided in rule 3 of Schedule III. However, he was of the opinion that rule 6 of Part B of Schedule III is applicable to the facts of this case, inasmuch as, the un-built area is calculated by him at 1906.03 sq. mt. as against the total are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are relevant for the disposal of these appeals may be extracted herein-below : " Valuation of immovable property. 3. Subject to the provisions of rules 4, 5, 6, 7 and 8, for the purposes of sub-section (1) of section 7, the value of any immovable property, being a building or land appurtenant thereto, or part thereof, shall be the amount arrived at by multiplying the net maintainable rent by the figure 12.5 : Adjustments to value arrived at under rule 3, for un-built area of plot of land. 6. Where the un-built area of the plot of land on which the property referred to in rule 3 is constructed exceeds the specified area, the value arrived at in accordance with the provisions of rule 3 shall be increased by an amount calculated in the following manner, namely :--- (a) where the difference between the un-built area and the specified area exceeds five per cent, but does not exceed ten per cent, of the aggregate area, by an amount equal to twenty per cent of such value ; (b) where the difference between the un-built area and the specified area exceeds ten per cent but does not exceed fifteen per cent of the aggregate area, by an amount equal to thirty per cent of such v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound to be more which, in turn, resulted in the addition. The word 'building', to the best of our knowledge, has not been defined in the Act. Same is the position under the I.T. Act also. The Hon'ble Calcutta High Court had an occasion to consider the definition of the word 'building' in the case of Oil India Ltd. v. CIT [1978] 114 ITR 323 wherein their Lordships have referred to the decision of the Hon'ble Supreme Court in the case of Ghanshiam Das v. Debi Prasad AIR 1966 SC 1998. Their Lordships of the Supreme Court observed that an open air swimming pool and a roofless large stadium constructed at a considerable expense would be " buildings ". Further, their Lordships of the Calcutta High Court have observed at page 325 as under : " Whether drains, culverts, roads, etc., are " buildings " or not, must necessarily depend on the facts and circumstances of each case. The nature of their construction, the expenditure incurred or laid out for the purposes of their construction and the object and purpose for which they were constructed are some of the factors which should be taken into account in determining the question as to whether they are " buildings " or not. Similarly, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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