1978 (8) TMI 18

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....ier. The first floor in Sion property was not used by him nor was it kept vacant for his use. It was, however, not let out to anybody. The simple question which arose for consideration before the taxing authorities and the Tribunal was whether the assessee was entitled to any allowance in respect of the vacancy in regard to that portion of the property. The ITO did not give any allowance on account of vacancy in the computation of the assessee's income from the property for both the years. The order of the ITO was upheld by the AAC and by the Tribunal. The Tribunal took the view that the deduction under s. 24(1)(ix) of the I.T. Act, 1961, will be available to the assessee provided two conditions are fulfilled : (1) The property must have be....

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....clause (ix) thereof and its provisions are as under : " 24. (1) Income chargeable under the head 'Income from house property' shall, subject to the provisions of sub-section (2), be computed after making the following deductions, namely :-- ...... (ix) where the property is let and was vacant during a part of the year, that part of the annual value which is proportionate to the period during which the property is wholly unoccupied or, where the property is let out in parts, that portion of the annual value appropriate to any vacant part, which is proportionate to the period during which such part is wholly unoccupied. " The provisions of clause (ix) can only be attracted if the condition therein mentioned is fulfilled. A deduction ....

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....o the decision of the Calcutta High Court in the case of Liquidator, Mahmudabad Properties Ltd. v. CIT [1972] 83 ITR 470. It was held in that case that under s. 24(1)(ix) where " property is let and was vacant ", the assessee was entitled to deduct the proportionate annual value. This expression should be given its ordinary reasonable meaning. That means that during a part of the year in question the property " is let and was vacant ". Where property is not let out at all during a particular year, the assessee would not be entitled to a deduction for vacancy. Having regard to the language of clause (ix) there is nothing unusual in the view that has been taken by the Calcutta High Court in this case and no special reason is pointed out why w....