TaxTMI 
TaxTMI 
1978 (6) TMI 97
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....ing the usual deduction fixed the net income at Rs. 20,605. 2. Before the AAC, it was contended that either s. 23 (2) of the IT Act, 1961 or 23 (3) (a) of the Act would be applicable to the assessee. The AAC held that since the assessee had not stayed in the said flat when he had visited Bombay it will be clear that application of s. 23 (2) of the Act had to be ruled out because the property in question cannot be said to be under the occupation of the appellant. Similarly he would say that the exemption under s. 23 (3) (a) would not be available because by the use by the father of the assessee of the flat the assessee had got the benefit. 3. The assessee has come on further appeal before the Tribunal. Mr. Srinivasan pointed out that thoug....
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....sessee is not in the occupation of the flat for the purpose of his own residence. The assessee being the owner of the flat having not let out to any body and having occupied the house cannot be said to have vacated the house in favour of his father. A use of residence by the father does not mean that he is the rightful occupant of the flat. Father has, admittedly, in this case no right of residence. He is only residing there at sufferance. In such a case it cannot be said that the assessee who could not reside in the house during the accounting year has released the house in his father's favour for his occupation. The flat is still in his occupation though he does not reside there. If the flat is let out, it can be said that he is not in oc....
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....occupied by the owner by reason" of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, the annual value of such house shall : (a) if the house was not actually occupied by the owner during the whole of the previous year, be taken to be nil or (b) if the house was actually occupied by the owner for a fraction of the previous year, be taken to be that fraction of the annual value determined under sub-s. (2). Provided that the following conditions are in either case fulfilled: (i) the house is not actually let and (ii) no other benefit therefrom is derived by the owner". It is clear from the above sub-sections that as in con....