2005 (8) TMI 570

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.... to the claim of depreciation of Rs. 1,60,000 in respect of Nariman Bhavan property. 4. The assessee has claimed depreciation of Rs. 1,60,000 on the Nariman Bhavan property which was let out upto assessment year 1998-99 and the rental income was being assessed under the head "Income from other sources". The case of the assessee is that, during the year the said property was not let out and it has been occupied by the assessee for its own use. The Assessing Officer did not allow the claim on the basis that merely because the property did not let out during the year the assessee cannot change the head of income and claim the depreciation in respect of said property. The ld. CIT(A) upheld the order of the Assessing Officer and held that the....

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....roduced any evidence to show that the tippers purchased by him on 29-3-1986 were used before 31st March, 1996. The Tribunal in the said case has held that there was positive material to show the existence of asset at the work site and held that even if there was no actual use, the fact that they were kept ready to use was enough to claim the depreciation on the principle of passive user of the asset. The Hon'ble Kerala High Court upheld the decision of the Tribunal. 8. We are of the view that the said decision is not of any help to the assessee, as the claim of depreciation has been made merely because the said property was not let out during the year. The said property was let out in the earlier years and said rental income has been ass....

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....heard the rival submissions. We find that there is no dispute that the charges paid to the society are not covered in the allowable deductions as enumerated under section 24 of the Income-tax Act. The claim of the assessee is that the said society charges are to be allowed as deduction from annual letting value (ALV) as in the case of Municipal taxes. In the case of Praveenkumar (supra), the expenditure incurred towards service charges and legal expenses were allowed as deduction while computing the annual letting value under section 23 of the Income-tax Act. It is an admitted fact that the gross rent receipt by the assessee also include the society charges which are to be paid by the assessee. In our view while computing the annual value t....