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2017 (5) TMI 1357 - AT - Income TaxIncome from a let out house property determination - whether brokerage expenses, legal and professional fees, bank charges and electricity charges were necessarily required to be incurred for the enjoyment / use of the relevant property by the tenant and therefore, the annual value of the property should be taken after reducing such expenses which are directly attributed to the earning of rental income? - Held that:- We find that from the gross annual value, municipal taxes (including service taxes) levied by any local authority in respect of the house property are deducted. Municipal taxes are deductible only if (a) these taxes are borne by the owner, and (b) are actually paid by him during the previous year. The remaining amount left after deduction of municipal taxes is net annual value. As per provisions of section 24, the following two deductions are available:- a) Standard deduction; and b) Interest on borrowed capital The list of allowance of section 24 is exhaustive. In other words, no deduction can be claimed in respect of expenses on insurance, ground rent, land revenue, repairs, collection charges, electricity, water supply, salary of liftman etc. In the instant appeal, no dispute arose about payment of rent nor the tenants have filed any suit in the Court for fixation of standard rent nor the Court has passed any order fixing the rent. Respectfully following the judgement of the Hon'ble Delhi High Court in the case of H.G. Gupta and Sons (1983 (12) TMI 54 - DELHI High Court ), we dismiss ground no 1 to 4 of the assessee Clerical error in taking interest income - Held that:- The actual interest income received by the assessee can be verified from the TDS certificates. Therefore, the order of the learned CIT(A) relating to this ground of appeal is set aside and the same issue is restored to the file of the AO. We direct the AO to verify the TDS certificates and bring to tax the actual interest income as per the provisions of the Act. Needless to say, the AO would give a reasonable opportunity to the assessee to represent before him this issue.
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