TaxTMI 
TaxTMI 
1979 (11) TMI 82
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....t determined or Rs. 1,800, whichever is less, in the computation of the dwelling house income of the assessee ? " The assessment year involved is 1964-65. The assessee, namely, Shyam Sunder, who is assessed in the status of an individual, is a co-owner in property bearing No. 59/23, Rohtak Road, Karol Bagh, New Delhi. His share is 1/4th. The other co-owners are his two brothers and the wife of a third brother. The property has 12 rooms. Each co-owner is stated to be in occupation of three rooms. They pay house tax separately and have separate electric meters. There is no dispute so far as the annual value of the property as a whole is concerned. The controversy, however, pertains to whether the reduction by half of the amount so de....
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....for which the property might reasonably be expected to let from year to year. Provision is next made for allowance of various deductions in different cases. One such is contained in sub-s. (2) of this section. The same is to the following effect : " 23. (2) Where the property consists of-- (i) a house in the occupation of the owner for the purposes of his own residence, the annual value of such house shall first be determined in the same manner as if the property had been let and further be reduced by one-half of the amount so determined or one thousand and eight hundred rupees, whichever is less ; (ii) more than one house in the occupation of the owner for the purposes of his own residence, the provisions of clause (i) shall apply....
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.... be included in his total income. Explanation.--For the purposes of this section, in applying the provisions of sub-section (2) of section 23 for Computed the share of each such person as is referred to in this section, such share shall be computed, as if each such person is individually entitled to the relief provided in that sub-section. " This Explanation to the section was added with effect from April 1, 1976. It, thus, did not exist during the period involved in the present assessment. There is further no dispute that, in terms of this section, the respective shares of the co-owners in the property are definite and ascertainable. A careful perusal of the provisions of ss. 23(2) and 26 of the Act shows that their scope is disti....
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....d as a single unit in terms of ss. 22 to 25, and deductions permissible should be then allowed. Once that annual value gets determined, all that has to be done in the case of co-owners is to apportion that value to them in the ratio of the shares which they hold in the property. There is no question of allowing any further separate deductions at this stage to the co-owners in terms of ss. 22 to 25. On the other hand, the assessee has asserted that when s. 26 envisages the determination of the share of each co-owner in the income from the property it again speaks of computation in accordance with ss. 22 to 25. In other words, it is pleaded that in the determination of the shares of these co-owners, the deduction permissible under s. 23(2) is....