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2005 (8) TMI 570 - ITAT MUMBAIIncome from house property - Society charges paid from the annual letting value - Depreciation - claim regarding utilization of Nariman Bhavan property for business purpose - HELD THAT:- The said property was let out in the earlier years and income was being assessed likely under the head "Income from house property". Merely the said property was not let out during the year does not mean that it was kept ready for the use for the purpose of business of the assessee. Thus, The finding of ld. CIT(A) is upheld. The second ground of the assessee’s appeal is dismissed. It is an admitted fact that the gross rent receipt by the assessee also include the society charges which are to be paid by the assessee. In our view while computing the annual value the amount of rent which actually goes to the hands of the owner in respect of leased property should be taken into consideration. As per the provisions of section 23 the annual value of any property is to be determined on the basis of actual rent received by the owner. It is held that the society charges paid by the assessee in respect of its let out properties are allowable while computing the annual value. One of the objections of the Assessing Officer with regard to the claim of society charges of Janki Cooperative Society is that the receipt of society charges is issued in the name of Shri Prakash Jain and not in the case of the assessee-company. The Assessing Officer is directed to verify, if the payment has been made by the assessee-company or not. If it is found that the payment is made by the society then same should be allowed as deduction, irrespective of the fact that the receipt is issued in the name of the Director of the assessee-company. We direct accordingly. In the result appeal is partly allowed.
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