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2021 (1) TMI 38 - ITAT MUMBAIClaim of Deduction from Rental Income u/s 23(1)(b) - Addition towards BPT lease [Bombay Port Trust ] rent while computing the income under the head Income from House Property - assessee firm has claimed the lease rent paid as deduction from the rental income/licence fee received from its tenants - whether CIT(A) erred in upholding the annual value of the property determined by the A.O without considering the lease rent paid by the Appellant firm to BPT? - HELD THAT:- Assessee firm has to pay the lease rent of building to its owner Bombay Port Trust (BPT) and also the assessee has entered into the leave and license agreement with tenants and receiving the rent. Referring to the factual aspects and provisions of Section 23(1)(b) of the Act are of the view that the assessee is entitled for claim of deduction of lease rent paid to the Bombay Port Trust(BPT) against the Leave and License fee/rent received from the tenants in determining the annual value of the property. Accordingly, we set aside the order of the CIT(A) and direct the Assessing officer to delete the addition and allow the grounds of appeal of the Assessee.
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