2004 (6) TMI 591

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....ing the income under the (head) "property" the assessee claimed deduction of Rs. 1,70,397 as follows : Rs. 1. Local taxes 3,750 2. Non-occupancy charges levied by society 1,17,832 3. Maintenance charges 48,785 2. While completing the assessment, the AO disallowed the claim for non-occupancy charges and maintenance charges on the ground that these expenses were not mentioned as deductions i....

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....nual letting value of the property under Section 23. Following the said order, we hold that the maintenance charges have to be deducted even while determining the annual value of the property under Section 23. 4. As regards the non-occupancy charges, the claim is that the rent received cannot take the character of rental income till the obligation of the assessee on account of non-occupancy charg....

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....f it is taken into account, the annual letting value would be considerably reduced because the payment of non-occupancy charges is inextricably linked with the letting out of the property. We find force in the assessee's contention. Though there is no provision in Section 24 for deduction of the non-occupancy charges, we are of the opinion that the non-occupancy charges will have a depressing effe....