House property loss set-off under section 71 is allowed when section 24 deductions create a loss after annual value computation.

Loss computed under the head "Income from house property" may be adjusted against income under other heads where the deductions under section 24 exceed the annual value determined under section 23, because section 71 permits inter-head set-off of such loss. The text states that section 23 must be read with section 24, and that the 1984 amendment removing the confusing portion of section 23 supports this interpretation. On that construction, the house property loss was correctly allowed to be set off against income from other heads, and the issue was answered in favour of the assessee.

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Issues: Whether loss computed under the head "Income from house property" could be set off against income under other heads for the assessment years in question.

Analysis: Section 23 governs determination of annual value and cannot be read in isolation. The deductions allowable under section 24 must also be taken into account, and where those deductions result in a loss under the head "House property", section 71 permits such loss to be adjusted against income under another head. The omission of the confusing portion of section 23 by the 1984 amendment also supports this construction.

Conclusion: The loss from house property was correctly allowed to be set off against income from other heads, and the question was answered in favour of the assessee.

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