Residential unit deduction under section 23(1) depends on the statutory text, not the tenant's later commercial use.

Clause (b) of the second proviso to section 23(1) was stated to attach the housing benefit to a building comprising one or more residential units constructed during the specified period, without making relief depend on the tenant's later use of the premises. The restriction that the building must actually be used for residential purposes by the occupant was rejected as unsupported by the text, applying the principle that nothing can be read into a fiscal provision beyond its words. The only stated withdrawal of the benefit arises where the owner occupies the residential building and claims the separate advantage under section 23(2), and the assessee was said to qualify for deduction for each residential unit.

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Issues: Whether the assessee was entitled to the deduction under clause (b) of the second proviso to section 23(1) of the Income-tax Act, 1961 in respect of two residential units let out for commercial use.

Analysis: The statutory benefit is attached to a building comprising one or more residential units constructed during the specified period, and the language of the proviso does not make the relief dependent on the tenant's subsequent user of the premises. In a fiscal enactment, nothing can be read in or implied beyond the words used. The restriction adopted by the Tribunal, namely that the building must actually be used for residential purposes by the occupant, was held to be unsupported by the provision. The only situation in which the benefit is withdrawn is where the owner occupies the residential building and obtains the separate advantage under section 23(2).

Conclusion: The assessee was entitled to the deduction of Rs. 1,200 for each residential unit, and the question was answered in the affirmative in favour of the assessee.

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