Watchman salary as deductible house property expense where the guard serves tenants and supports rent realisation.

Salary paid to a watchman engaged for the benefit of tenants and for services connected with the building was treated as a deductible outgoing against house property income, because the rent included consideration for both the premises and the services rendered. On that basis, the restriction imposed by the first appellate authority was upheld and the allowance of the watchman's salary sustained. The principle applied is that expenditure directly relatable to realisation of rent and tenant services is an allowable deduction when computing income from house property.

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Issues: Whether the salary paid to the watchman was allowable as a deduction against the income from house property.

Analysis: The watchman was appointed for the benefit of the tenants and for rendering services connected with the building. The rent received by the assessee included not merely consideration for the premises but also for the services rendered to the tenants. In that setting, the watchman's salary was treated as a proper outgoing relatable to the income received, and the allowance restricted by the first appellate authority was found to be justified.

Conclusion: The salary of the watchman was allowable, and the restriction made by the first appellate authority was upheld.

Final Conclusion: The departmental appeal failed and the allowance of watchman salary was sustained.

Ratio Decidendi: Where a watchman is engaged for services benefitting tenants and connected with realization of rent, his salary is an allowable deduction relatable to the house property income.

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