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2014 (6) TMI 1024 - AT - Income TaxIncome from house property - Claim of deduction of maintenance charges paid to society / builder in respect of the following flats let out by the appellant - HELD THAT:- Only the change in clause (b) is that, instead of the word “properties let and annual rent received or receivable”, the same has been substituted with “property or any part of the property is let and the actual rent received or receivable”. Thus, there is no material change except for annual rent received or receivable has been replaced by actual rent received or receivable and, therefore, on this basis, to conclude that the earlier decisions will not be applicable is not correct. The Hon’ble High Court in CIT v/s R.J. Wood Pvt. Ltd. [2011 (1) TMI 889 - DELHI HIGH COURT] held that maintenance charges and other charges paid by the assessee is deductible from the rent while computing annual letting value. As per the lease agreement, which has been placed in paper book, it is seen that the assessee was liable to pay the municipal charges out of the rent received from the licensee. If the licensee had to make such payment, then the actual rent received would have been less. The deduction under section 24, is to be calculated on the basis of income which is earned and chargeable to tax under section 22 and 23. If the gross rent also includes society charges, which is to be paid by the assessee, then while computing the annual value, the amount of rent which is actually received in the hands of the owner in respect of the lease property should be taken into consideration while giving the deduction under section 24. Thus, the actual rent received as envisaged in section 23, should be construed as net rental income received after deducting mandatory society charges. - Decided in favour of assessee.
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