TaxTMI 
TaxTMI 
2021 (1) TMI 38
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....hile computing the income under the head Income from House Property. 2. The CIT(A) erred in upholding the annual value of the property determined by the A.O without considering the lease rent paid by the Appellant firm to BPT. 3. The appellant craves leave to add, alter and or amend all any foregoing grounds of appeal". 2. The brief facts of the case are that the assessee is a partnership firm and has income from House property interest on deposits and income from other sources. The assessee firm filed the return of income on 25.07.2013 disclosing the total income of Rs. 1,72,64,680/-. Subsequently, the case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act along with questioner were issued. In compliance to the no....
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....eduction of 30% of NAV u/s 24(a) of the Act and therefore no other deduction is allowed. Hence disallowed the claim of lease rent paid to BPT and computed the total income of Rs. 1,98,81,630/- and passed the order u/s 143(3) of the Act on26-03- 2016. Aggrieved by the order, the assessee has filed an appeal with the CIT(A),whereas,the Appellate Authority considered the grounds of appeal and submissions of the assessee but concord with the action of the A.O in disallowing the claim of the assessee and dismissed the assessee appeal. Aggrieved by the order of the CIT(A),the assessee has filed an appeal with the Tribunal. 3. At the time of hearing, the Ld. AR has submitted that the CIT(A) has erred in confirming the action of the assessing of....
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....Act, which is read as under: "(1) For the purposes of Sec. 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 (b) 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), the amount so received or receivable; or" 6. Further, We find that the assessee firm has to pay the lease rent of building to its owner Bombay Port Trust (BPT) and also the assessee has entered into the leave and license agreement with tenants and receiving the rent. The A.O dealt on the clauses and agreements entered with the tenants and are no....
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....as the obligation of the assessee to pay the maintenance charges. The assessee, on the other hand, wanted these tenants to pay the maintenance charges exclusive of contractual rent. Because of this dispute, the tenants filed a suit in Small Causes Court for fixation of standard rent. In that case, the Small Causes Court passed an interim order in 1994 fixing the rent at Rs. 30,000 per month, which was less than the contractual rent agreed upon between the parties in the rent agreement. Since the rent was fixed on lump sum basis at Rs. 30,000 per month, the assessee had to pay the maintenance charges, which were claimed as deduction. The Assessing Officer disallowed the claim on the ground that as per the lease agreement these maintenance ....
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.... of fair rent or standard rent under the rent control legislation. If this contention of assessee is correct, then the house property income has to be determined under the provisions of section 23(1)(b), otherwise the house property income has to be assessed under section 23(1)(a). Section 23(1)(a) & (b) being relevant provisions applicable for deciding the present controversy are reproduced below : "23. (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 (b) 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....
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....on 23(1)(b) only applies to cases where the actual rent received is more than the reasonable rent under section 23(1)(a) of the Act and it is for this reason that section 23(1)(b) contemplates that in such cases the annual value should be decided on the basis of the actual rent received." 6. It is not disputed by revenue that only section 23(1)(b) is applicable to the present case as it is also not the case of assessing officer as he has computed the house property income as per actual rent received. In this view of the situation, if the outgoings in respect of which additions have been deleted by CIT (A) were the liability of the assessee, the same should be excluded from the assessable income as the net amount only can be considered whi....