2011 (12) TMI 727

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....s of the case in denying your petitioner the deduction of society charges amounting to Rs. 1,32,300/- and non-occupancy charges of Rs. 6,300/-, totaling to Rs. 1,38,600/- under the head property income in respect of the Belverdere Court, Mahalaxmi."   3. The facts in brief are that the assessee had shown income from house property at Rs. 6,17,881/- after reducing the Municipal Tax of Rs. 61,380/-, society charges of Rs. 1,32,000/- and non-occupancy charges of Rs. 6,300/- from the rent received and then deduction @ 30% u/s 24 of annual value is taken resulting in property income at Rs. 6,17,881/-. In support of his claim the assessee relied on the decisions of the ITAT. The AO, however, noted that provisions of section 24 have been a....

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....noccupancy charges as these are not specified under section 24 of the Act and standard deduction @ 30% of ALV has been provided for to take care of such expenses. Still aggrieved, the assessee is in appeal before us.   5. Before us, the learned counsel for the assessee submitted that the issue is covered by the decision of ITAT Mumbai Bench "A", Mumbai in the case of Ms. Aloo Bejan Daver in ITA Nos. 2381 & 2382/Mum/10 for AYs 2005-06 & 2006-07 order dated 29th April, 2011. The learned DR, on the other hand, did not controvert the submission made by the assessee nor brought any contrary decision in this regard.    6. After hearing both the parties and perusing the material on record, we find that the issue is covered by ....

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....ter considering the decision of the Hon'ble Bombay High Court in the case of J.K. Investors (Bombay) Ltd. [20010 168 CTR (Bom) 189 has held that for the purpose of determining annual value of the property all the taxes cesses and outgoings being liabilities of the assessee, have to be excluded from assessable income in view of s. 23(1)(b). So far as the decision of the Tribunal in the case of Barodawala Properties Ltd. (supra) is concerned, we find that the Tribunal in subsequent judgments have held that while calculating annual value of the let out property, maintenance charges paid to the society by the assessee is admissible deduction from the annual let out value u/s 23(1)(b). In view of the series of decisions relied on by the ld. Coun....