2016 (11) TMI 1687

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....g deduction on account of maintenance charges, while computing income under the head "Income from House Property", to Rs. 1,22,956/-, as against the appellant's claim for Rs. 3,74,100/- 2. The learned Commissioner of Income Tax (Appeals) erred in not considering the correct facts as regards the various flats given out on leave and licence basis. 3. Without prejudice to ground no.1 above, the appellant submits that the learned Commissioner of Income Tax (Appeals) erred in restricting deduction for municipal taxes (actually paid during the year) to Rs. 61,920/- as against the appellant's claim for Rs. 2,06,028/-. 4. The learned Commissioner of Income Tax (Appeals) erred in holding that an amount of Rs. 7,70,986/- being stamp duty actual....

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....only under Section 24. The assessee agitated the matter before CIT(A) which was partly allowed vide order dated 19/01/2015. The assessee contended that maintenance charges are admissible as deduction. CIT(A) noted that these charges pertained to four properties as per details given below: Flat No. Amount(Rs.) 704 0 (since recovered from tenant) 1101 1,22,956 1102 46,000 1202 1,22,956 Godown 82,188 Total 3,74,100 CIT(A) concluded that since the assessee offered lease income of Rs. 3.00 Lacs against Flat No. 1101 only during the year in question, he was entitled for deduction of Rs. 1,22,956/- only. Accordingly, he partly allowed the claim of the assessee. Similar proportionate relief was provided from Municipal Taxes totaling ....

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....lowing two deductions to the extent of Rs. 1,22,956/- & Rs. 61,920/- separately on account of maintenance charges and municipal taxes respectively which pertained to Flat No. 1101 whereas in fact the total amount pertaining to Flat No. 1101 was, in fact, Rs. 1,22,956/- inclusive of municipal taxes. Further, when Income is calculated under the head House Property, then besides statutory deduction of 30% u/s 24, an assessee is entitled only for deduction with respect to taxes levied by any local authority. Therefore, society maintenance charges levied by the Society which is not a local authority are not at all allowable to the assessee. Therefore, we held so and accordingly, maintenance charges of four flats amounting to Rs. 1,68,072/- are n....