TaxTMI 
TaxTMI 
2011 (6) TMI 499
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....charges & municipal taxes from the income from house property and disallowance of part electricity expenses vide order dated 04- 09-2006 passed u/s. 143(3) of the I.T. Act, 1961 ("the Act"). On appeal, the ld. CIT (A), while confirming the disallowance made by the AO, dismissed the assessee's appeal. 3. Being aggrieved by the order of the CIT (A), the assessee is in appeal before us. 4. Ground no.1 is against the sustenance of disallowance of brokerage paid Rs. 37,780/- against rent received from letting out of property at Oxford Towers, Andheri, Mumbai. 5. At the time of hearing, the ld. counsel for the assessee submits that he does not want to press the above ground, which was not objected by the ld. D.R. 6. That being so and ....
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....s like municipal taxes etc., rejected the claim of the assessee. 9. At the time of hearing, the ld. counsel for the assessee, while reiterating the same submissions as submitted before the AO and ld. CIT(A), further submits that in view of the decisions cited before the AO, the deduction of municipal taxes & Society charges are allowable and hence the same be allowed. 10.On the other hand, the ld. D.R. supports the orders of the AO and the CIT(A). 11. We have carefully considered the submissions of the rival parties and perused the material available on record. We find that the claim of deduction of municipal taxes & Society charges amounting to Rs. 1,36,066/- was disallowed by the Revenue authorities on the ground that a flat amou....
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....r in which the liability to pay such taxes was incurred by the owner. Under the existing provisions, this deduction was allowable only in respect of property which was in the occupation of a tenant. As per the amended provisions, however, the deduction is available in every case where annual value is determined under sub-section (1) including the case of a second self-occupied house not falling under sub-section (2) of the section." 13. In view of the above provision of law, we are of the view that the ld. CIT (A) was not justified in upholding the order of the AO in disallowing the claim of deduction of municipal taxes and hence the AO is directed to allow the same. 14. With regard to the deduction of Society charges, we find that it....
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....was held that the maintenance charges have to be deducted even while arriving at the annual letting value of the property under s. 23. Following the said order, we hold that the maintenance charges have to be deducted even while determining he annual value of the property under s. 23." 17. In Lekraj Channa vs. ITO (1990) 37 TTJ (Del) 297, it has been observed and held as under B~>>However, the other part of the expenditure which is for the maintenance of the building security of the building and to attend to the requirements of the tenants is also an expenditure borne by the landlord. Such expenditure, if not deductible under collection charges would have to be considered in computing the annual letting valu....
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....ue, we, respectfully following the consistent view of the Tribunal, hold that the Society charges paid by the assessee in respect of the let out property are allowable while computing the annual letting value of the property under section 23 of the Act. This view also finds support from the recent decision of Hon'ble Delhi High Court in CIT vs. R.J. Wood P. Ltd. (2011) 334 ITR 358 (Delhi) wherein it has been held that the maintenance and other charges paid by the assessee were deductible from the rent while computing the annual letting value. Accordingly, the AO is directed to allow the same. Ground no. 2 taken by the assessee is, therefore, allowed. 20. Ground no. 3 is against the sustenance of disallowance of 50% electricity charges. ....