1995 (4) TMI 1

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.... the judgment of the Calcutta High Court (see [1977] 106 ITR 743) answering the question referred to it in favour of the assessee and against the Revenue. The question referred under section 256(1) of the Income-tax Act, 1961, was "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the statutory allowance mentioned in section 23(2) of the Income-tax ....

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....ispute which is reflected in the question referred for the opinion of the High Court. We may state immediately that such a dispute would not really arise after the assessment year 1976-77 and onwards because of the insertion of the Explanation in section 26. Disputes had arisen before the said Explanation was inserted by the Taxation Laws (Amendment) Act, 1975. Section 22 provides that the a....

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....ect from April 1, 1976, reads thus: "26. Property owned by co-owners.-Where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons, but the share of each such person in the income from the pro....

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....d that the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income. Sections 22 to 25 prescribe the manner in which the income from house property has to be determined. We are, therefore, of the opinion that the respondent was justified in claiming that the deduction provided for by section 23(2) be allowed to....