House-property deductions and diesel expense disallowance turn on statutory limits and factual substantiation.

Under the head income from house property, only deductions specifically permitted by statute are allowable, so society charges paid for a let-out property are not deductible as an additional claim. The text also notes that diesel running expenses were examined on facts for abnormality, inadequate substantiation, and breach of cash payment restrictions; the complete disallowance was not sustained and the addition was confined to a reduced amount. Overall, the commentary treats the house-property deduction issue as governed strictly by the statutory scheme and the diesel expense issue as one turning on factual verification and proportional disallowance.

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Issues: (i) Whether society charges paid in respect of the let out property were deductible while computing income from house property. (ii) Whether the disallowance out of diesel running expenses was sustainable, including the extent of restriction in view of cash payments.

Issue (i): Whether society charges paid in respect of the let out property were deductible while computing income from house property.

Analysis: The claim was examined with reference to the limited deductions permissible under the head income from house property. The charges were found not to fall within the deductions allowed for determining annual value or the specific allowances under the Act. The reliance placed on earlier authority was treated as distinguishable on facts.

Conclusion: The society charges were not allowable as a deduction and the disallowance was upheld against the assessee.

Issue (ii): Whether the disallowance out of diesel running expenses was sustainable, including the extent of restriction in view of cash payments.

Analysis: The claimed diesel expenditure was found to be abnormally high compared with earlier consumption and was not sufficiently substantiated. The record also indicated violation of the cash payment restriction in relation to diesel purchases. However, the complete disallowance was not sustained and the disallowance was reduced to a lesser amount on appreciation of the facts.

Conclusion: The disallowance was sustained in part only, with relief granted by restricting the addition to Rs. 1,51,315.

Final Conclusion: The assessee succeeded only to the extent of reduction in the diesel expense disallowance, while the disallowance of society charges remained confirmed.

Ratio Decidendi: Under the head income from house property, only the deductions specifically permitted by the statute are allowable, and claimed expenditure not covered by those deductions cannot be introduced as a further deduction; expenditure disallowance may be restricted where the factual basis does not justify sustaining the entire addition.

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