TMI Blog2005 (8) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use the property did not let out during the year the assessee cannot change the head of income and claim the depreciation in respect of said property. The ld. CIT(A) upheld the order of the Assessing Officer and held that the assessee was not engaged in the business during the relevant previous year and its claim regarding utilization of Nariman Bhavan property for business purpose is without any basis and consequently the claim of depreciation is not admissible merely because property was lying vacant and there was no income derived therefrom. 5. The ld. counsel for the assessee Miss Ritika Garg stated that even if the property is not used by the assessee during the year, the depreciation has to be allowed as property was ready for use and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee, as the claim of depreciation has been made merely because the said property was not let out during the year. The said property was let out in the earlier years and said rental income has been assessed as Income from house property , which means that there was no intention of the assessee to use the said property for the purpose of his own business. The finding of ld. CIT(A) is upheld. The second ground of the assessee s appeal is dismissed. 9. The third ground and the fifth ground of the assessee is regarding the claim of society charges from the annual letting value. 10. The Assessing Officer had disallowed the expenses on the ground that the said expenses are not allowable under section 24 out of rent received by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act. 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. 13. The case law referred by the Revenue is not of any help to them as in the case of Sreelekha Banerjee ( supra ) it was held that after annual value is determined, the deduction as enumerated as income-tax under section 24 will be allowed. Salary paid to the caretaker is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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