2025 (5) TMI 125
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....fter, the Act] for the assessment year 2014-15. 2.The assessee has raised the following grounds in appeal: 1) That the learned Commissioner of Income Tax (Appeals) has erred in upholding the disallowance of Rs. 8,91,950/- made by the Assessing Officer in respect of the claim made by the assessee for deduction of annual mixed use charges paid by the assessee to the Municipal Corporation of Delhi, in respect of property rented out by the assessee. 2) That the learned Commissioner of Income Tax (Appeals) has erred in holding that such annual mixed use charges are not in the nature of taxes levied by any local authority. 3) That the learned Commissioner of Income Tax (Appeals) ought to have appreciated that the assessee was able to reali....
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....e assessee has offered the rental income for tax under the head of income from house property. The properties of the assessee are situated in the residential zone where the commercial activity is not permitted. The assessee paid an aggregate tax of Rs. 13,40,720/- in which Rs. 4,48,770/- paid towards the normal property tax and Rs. 8,91,950/- towards additional property tax being Mixed Use Charge to the MCD. He further submitted that the assessee has paid mixed land use charges which shall be reduce in computing annual value u/s 23 (1)(b) of the Act. He also submitted that AO has wrongly disallowed the mixed uses charges which was paid by the assessee. Reliance has placed on the following decisions: 1.DCIT vs Haldiram Products Pvt. Ltd.ITA....
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.... received from its tenants. The Ld. AR mentioned that the annual value of the property has to be determined as per the provisions of Section 23(1) of the Act. We consider it appropriate to refer to Section 23(1)(b) of the Act which is read as under: (1) For the Purpose 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 there of is in excess of the sum referred to in clause (a) the amount so received or receivable or 8 We find in the case of Transmarine Corporation vs. ACIT - 17(3) the Co-ordinate benc....
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....e 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 charges were to be borne by the tenants. The Commissioner (Appeals), however, allowed this claim which view of the Commissioner (Appeals)was affirmed by the Tribunal as well. Held that since the maintenance and other charges were paid by the assessee, it was rightly held to be deductible from the rent while computing the annual letting value. 7.1 We also find in the case of M/s. Suman Didwania Vs. ACIT (supra), Hon'ble Tribunal has held as under: "3. We have heard the parties. The L....
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....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;" It will be relevant to reproduce below the observations of jurisdictional High Court in the case of CIT v. J.K. Investors (Bombay) Ltd. (2001) 248 ITR 723 (Bom) relating to the above provision of Income-tax: "In this matter, we are required to consider the scheme of taxation of income from house property. Section 22 says that the measure of income from house property is its annual value. The annual va....
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....s 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 which is received by the assessee or is receivable by the assessee as per express provisions of section 23[1](b). However, this fact has not been considered ascertained that whether the amounts claimed by the assessee and disallowed by the assessing officer in respect of car-parking, water charges and municipal charges and other charges were the actual liability of the assessee or not. This factual aspect has to be examined as per the terms of agreement as well as keeping in vie....