TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 1192
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....g the action of the Assessing Officer in disallowing the electricity expenses paid while computing the income from house property and taking the ALV under section 23 of the Act as gross rent. 3. Briefly stated the facts are that the assessee has disclosed gross rent at Rs. 3,21,412/- and claimed electricity charges from the gross rent at Rs. 2,35,666/- and disclosed a sum of Rs. 85,746/- as ALV of the house property and declared this as rental income. The Assessing Officer disallowed the claim of electricity charges paid by the assessee by observing that "the Act is specific about what expenses can be claimed against house property income. There is no provision of claiming electricity expenses against house property income. Ac....
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....r to year; or where the property or any part of the property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a) of section 23(1) of the Act, the amount so received or receivable. Ld. Counsel for the assessee relied on the following case laws:- (i) CIT -vs.- Jyotsna Rani Saha (1999) 239 ITR 916(Cal.); (ii) Bagree Estates (P) Ltd. -vs.- DCIT, Special Range-10, Calcutta (ITA No. 1661/Cal./1990), ITAT, Kolkata's order dated 25.03.1994; (iii)Neelam Cable Manufacturing Co. -vs.- ACIT (1997) 59 TTJ Del. 474; (iv)ACIT -vs.- Mohanlal Rupesh Kumar (2001) 70 TTJ Gau. 931; (v) M/s. Kamlesh Real Estates Pvt. Ltd. -vs.- ACIT(OSD)-2, Mumbai in ITA No. 1451/Mum/....
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....he property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a) of section 23(1) of the Act, the amount so received or receivable". I find that now the issue is covered by the decision of the Hon'ble Calcutta High Court in the case of Jyotsna Rani Saha (1999) 239 ITR 916(Cal.), where the question referred to was as under:- "Whether, on the facts and in the circumstances of the IncomeTax Appellate Tribunal was justified in allowing deductions on account of salary paid to night guard, sweeper and caretaker and certain electricity charges from gross rent received in computing house property income when the same are not allowable as deduction either under....
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....52 on account of building repairs and security service charges includes a sum of Rs. 30,012 incurred by way of security service charges. This amount of security service charges of Rs. 30,012 spent by the assessee should be deducted out of the gross rent of Rs. 2,72,707 received by the assessee. It is true that no such deduction is specifically provided in s. 24 of IT Act, 1961. However, deduction in respect of security service charges paid by the assessee will be deductible while computing the annual value under s. 23 of IT Act, 1961. Sec. 23 provides that the annual value of any property shall be the same which the property might reasonably be expected to let from year to year. Whether the property has been let and the annual rent received....
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....in the case of Municipal taxes. In the case of Praveenkumar (supra), the expenditure incurred towards service charges and legal expenses were allowed as deduction while computing the annual letting value under section 23 of the Income-tax Act. It is an admitted fact that the gross rent receipt by the assessee also include the society charges which are to be paid by the assessee. In our view while computing the annual value the amount of rent which actually goes to the hands of the owner in respect of leased property should be taken into consideration. As per the provisions of section 23 the annual value of any property is to be determined on the basis of actual rent received by the owner." 19. In the absence of any contrary decisio....