TaxTMI 
TaxTMI 
1997 (8) TMI 108
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....electric charges and salary to chowkider and sweeper while computing income from house property. 4. The assessee is an individual and the assessment order was passed under s. 143(3) of the Act. The assessee had income from house property, etc. While computing income from house property the assessee claimed expenses such as municipal tax, electric charges, salary to chowkidar and sweeper as well as miscellaneous expenses. The AO computed the income from house property and allowed municipal tax under s. 23 of the Act as a deduction from the gross rent and under s. 24 of the Act he has allowed 1/6th for repairs and also interest paid on borrowed amount for construction of a building. The claim for deduction on account of electric charges, sal....
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...., supports the order of the first appellate authority. It is also submitted that the Gauhati Bench of the Tribunal in the case of ITO vs. H.P. Jalan, has allowed deduction claimed by the assessee on account of salary paid to sweeper, chowkidar and also electricity charges as claimed. The learned counsel has filed a paper book in support of his argument. It is submitted that the order of the first appellate authority may be sustained. 7. On careful consideration of the rival submissions, orders of the authorities below and the paper book filed by the assessee's counsel, I find that the appeal by the Revenue on this point has considerable force. It is not disputed that the AO computed income from house property and allowed deduction on accou....
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....ant were as a result of its activities with the sole purpose and with a view to earn profit in order to consider the activity as assessee's activity. It was not the claim of the assessee that part of the rent received was the assessee's business income. In the case of ITO vs. Shri H.P. Jalan the Tribunal while allowing deduction on account of salary of chowkidar and sweeper and also electric charges has made a finding of fact. From the receipt issued by the assessee to the tenants, certain amounts were collected from the tenants as other service charges in addition to the house rent. The claim for deduction on account of salary of chowkidar and sweeper and payment of electricity charges were made from the collection under the head other ser....