TaxTMI 
TaxTMI 
2003 (1) TMI 79
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....Whether the Tribunal misdirected itself in law in upholding the order of the Commissioner of Income-tax under section 263 withdrawing the deduction under section 24(1)(i)(a) of Rs. 15,23,905?" The moot question that falls for our consideration is whether, having regard to the terms of the deed of lease, the assesses is entitled to the benefit under clause (a) or the case falls under clause (b) of section 24(1)(i) of the Income-tax Act, 1961. Initially, in the earlier order, such benefit was allowed to the assessee under the said provision. But subsequently, in exercise of power conferred under section 263 of the 1961 Act, the appellate authority had re-opened the case and reversed the finding and held that clause (a) is not applicable in t....
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....filtered tubewell water by means of electrical pumps and overhead tanks for the use of the lessee in the demised premises and to operate and maintain water pump in proper repair and condition and also to pay electricity and other charges for operating the said water pump. Sub-clause (v) thereof provides that the lessor has to keep the demised premises wind and water tight and maintain in proper repair and condition the electric, sanitary and water fittings, equipment and appliances, pipelines, drains and sewage and common parts of the said building and execute all repairs of the demised premises as and when required and also execute white washing and colour washing of the exterior of the demised premises and also to paint the doors and wind....
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.... court by Mr. Khaitan. Therefore, we need not deal with section 263 of the 1961 Act. We are primarily concerned with section 24, which provides in sub-section (1) that an assessee is entitled to deduction while computing his income from house property. Such deduction, as it stood prior to the Finance Act, 1992, which came into effect on April 1, 1993, relevant for our purpose, provides as follows: "24. (1) Income chargeable under the head 'Income from house property' shall, subject to the provisions of sub-section (2), be computed after making the following deductions, namely:-- (i) in respect of repairs,- (a) where the property is in the occupation of the owner, or where the property is let to a tenant and the owner has undertaken to be....
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....portion in his occupation. The intention was to determine the question on the basis of undertaking of the liability to bear the cost without making any distinction with regard to joint liability. Therefore, as soon as it appears that the liability for substantial repairs is undertaken by the landlord, clause (a) is attracted. The expression "cost of repairs", therefore, has to be interpreted to mean substantial repairs. In this case, the liability to repair the exterior is upon the lessor together with the maintenance of the supply lines of electricity, water and sewerage and other essential services in the demised premises, which are integral parts of the demise, as well as of the interior other than those undertaken by the lessee. The lia....