https://www.taxtmi.com/caselaws?id=218874 Commercial surcharge recovered from tenants for non-residential premises is treated as part of the actual rent for determining annual value under section 23(1) of the Income-tax Act. The Court reasoned that, under the municipal framework, the surcharge forms part of consolidated rates, the owner remains primarily liable to the municipality, and the statutory right to recover the amount from the occupier supports its character as a tenancy-related receipt. Amounts received in connection with the letting relationship retain their income character even if separately accounted for or later payable onward to the municipal authority. The recovered surcharge is therefore includible in income from house property, subject to deduction only when actually paid as permitted by law. en-us Thu, 17 May 2012 00:00:00 +0530 Wed, 28 Nov 2012 14:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218874 Commercial surcharge recovered from tenants for non-residential premises is treated as part of the actual rent for determining annual value under section 23(1) of the Income-tax Act. The Court reasoned that, under the municipal framework, the surcharge forms part of consolidated rates, the owner remains primarily liable to the municipality, and the statutory right to recover the amount from the occupier supports its character as a tenancy-related receipt. Amounts received in connection with the letting relationship retain their income character even if separately accounted for or later payable onward to the municipal authority. The recovered surcharge is therefore includible in income from house property, subject to deduction only when actually paid as permitted by law. Case-Laws Income Tax Thu, 17 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218874