Repair deduction under section 24(1)(i) disallowed where the lease deed placed repair liability on the lessee.

Deduction under section 24(1)(i) was held not allowable for repairs to let-out premises because the lease deed placed the repair liability on the lessee. The Court followed its earlier decision on the same question for a connected assessment year and upheld the revision under section 263. The issue was answered in favour of the Revenue and against the assessee, confirming that the claimed repair deduction could not be sustained on the facts and lease terms.

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Issues: Whether deduction under section 24(1)(i) of the Income-tax Act, 1961, was allowable in respect of repairs to premises let out by the assessee.

Analysis: The liability for repairs was found, on the terms of the lease deed, to rest on the lessee. In view of the earlier decision of the Court on the same question for a connected assessment year, the claimed deduction was not sustainable. The revision made under section 263 of the Income-tax Act, 1961, was therefore upheld.

Conclusion: The question was answered in the affirmative, against the assessee and in favour of the Revenue, and the deduction was held not allowable.

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