1975 (11) TMI 28

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of undivided one-third share in a house property and along with his brothers, the other co-sharers, they and their families completely occupied the house. The Income-tax Officer in making the assessment order followed the valuation of an earlier year without making any particular computation. The assessee filed an appeal before the Appellate Assistant Commissioner and suggested computation of such income by first determining the annual value of the entire property and thereafter the value of his one-third undivided share. From the amount ascertained as above he claimed a further reduction of Rs. 1,800 or half of his income under section 23(2) of the Income-tax Act, 1961. The Appellate Assistant Commissioner did not accept the conte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....computing the income from house property falling to the share of each of the co-owners including the assessee ? " The Scheme of the Act in respect of the taxability of the income from house property is as follows : Under section 22 of the Act the annual value of the property owned by the assessee is made chargeable to income-tax under the head " income from house property ". Section 23 lays down the procedure for determination of annual value. Sub-section (2) of this section lays down that after the annual value has been determined under sub-section (1) it has to be reduced by one-half of the amount so determined or Rs. 1,800, whichever is less. Section 24 provides for further deductions from such income from house property after the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has construed sections from the earlier Act to show that the income from house property must be computed in the context of the income of the owner and not as the notional income of the entire property as such as already noted. The matter, however, is set at rest by the Explanation which has been added under section 26 under the Taxation Laws (Amendment) Act, 1975. This Explanation reads as follows : " For the purposes of this section, in applying the provisions of sub-section (2) of section 23 for computing 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. Under well-known principles of construct....