2002 (1) TMI 46

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....loor of the premises owned by the assessee at Rs. 1,74,060 and subjecting it to tax under the Act. The assessee is an individual owning a property at No. 380, 15th Cross, II Stage, II Phase, West of Chord Road, Bangalore. The building consisted of two floors, viz., ground and first. The assessee had filed return of income disclosing a rental income of Rs. 3,000 per month in respect of the ground floor. In respect of the first floor the assessee had not declared the annual letting value but claimed that it was mortgaged to one Harish Babu for Rs. 1,50,000 for a period of five years and he was not deriving any income from it. The Assessing Officer did not accede to the no income claim of the assessee in respect of the first floor and added....

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....usiness or profession the profits of which are chargeable to income-tax. Where the property is not self-occupied or rented out, section 23(1)(a) provides the mode for the purposes of determining its annual value. It reads: "(1) For the purposes of section 22, the annual value of any property shall be deemed to be- (a) the sum for which the property might reasonably be expected to let from year to year; or.. ."Sub-section (2) of section 23 alone provides for total exemption from charging the annual value of the property to tax. It reads: "(2) Where the property consists of a house or part of a house which (a) is in the occupation of the owner for the purposes of his own residence; or (b) cannot actually be occupied by the o....