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2011 (4) TMI 1277 - AT - Income TaxDenial of deduction of society charges - Income from house property - deductions claimed u/s 023 - the assessee submitted that he has paid society charges and non-occupancy charges as per clause 7 of Leave and Licence Agreement and same has been claimed as deduction while computing annual letting value. HELD THAT:- We find the Mumbai Bench of the Tribunal in the case of Gopichand P. Godhwani 2004 (10) TMI 542 - ITAT MUMBAI, after considering the decision of the Hon’ble Bombay High Court in the case of J.K. Investors 2000 (6) TMI 9 - BOMBAY High Court has held that for the purpose of determining annual value of the property all taxes, cesses and outgoings being liabilities of the assessee, have to be excluded from assessable income in view of s. 023(1)(b). So far as the decision of the Tribunal in the case of Barodawala Properties Ltd.2001 (12) TMI 875 - ITAT MUMBAI is concerned, we find that the Tribunal in subsequent judgments have held that while calculating annual value of the let out property, maintenance charges paid to the society by the assessee is admissible deduction from the annual let out value u/s 023(1)(b). In view of the series of decisions relied on by the ld. counsel for the assessee supporting the deductibility of society charges from the gross rent for the purpose of determining the annual let out value u/s 23(1)(b), we hold that the assessee is entitled to deduction of society charges from the rent so received for the purpose of determining ALV u/s 023(1)(b). The ground raised by the assessee is accordingly allowed.
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