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2016 (11) TMI 1687 - AT - Income TaxIncome from house property - allowability of Maintenance charges against lease income - allowability of impugned charges/taxes from lease income which has been disallowed by revenue primarily on the ground that the assessee has offered income only against one property - HELD THAT:- When Income is calculated under the head House Property, then besides statutory deduction of 30% u/s 24, an assessee is entitled only for deduction with respect to taxes levied by any local authority. Therefore, society maintenance charges levied by the Society which is not a local authority are not at all allowable to the assessee. Therefore, we held so and accordingly, maintenance charges of four flats are not allowable under the head ‘Income from House Property’. As assessee has contended that Godown has been used by assessee for business purposes and therefore, we restore this matter to file of AO for limited purpose of verifying assessee’s claim that the godown was used for business purpose during impugned AY or not and if so, allow the deduction for municipal taxes under the head ‘Business Income’. So far as regarding, municipal taxes for four properties are concerned, a combined perusal of Statement of Total Income for AY 2006-07 & 2005-06 strengthens the claim the assessee that lease income has been offered on receipt basis as per TDS certificates to avoid mismatch of TDS credit. Therefore, we held that municipal taxes relating to four properties are allowable under the head ‘Income from House Property. The appeal of the assessee against Ground Nos. 1 to 3 is partly allowed. Disallowance u/s 43B - We find that assessee had filed return of income for AY 2006-07 on 06/11/2006 whereas the 43B claim of the assessee for AY 2005-06 has been disallowed by AO vide order dated 05/12/2007 and affirmed by CIT(A) order dated 25/03/2009. Therefore, there was no occasion with the assessee to claim the same in statement of total income. Therefore, this matter is also restored to AO for limited purpose of verifying the 43B payment made by the assessee and allow the same to the extent of ₹ 7,70,986/-, if the same has not been allowed in AY 2005-06 consequent to Tribunal’s order. The ground nos. 3 to 6 of the assessee is allowed for statistical purposes.
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