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2004 (10) TMI 542 - ITAT MUMBAIDetermination of house property income u/s 23(1)(a) and 23(1)(b) - Disallowance of car parking charges, water charges, municipal and other charges paid by the Bank - rent agreement entered into between the assessee and Bank of India - HELD THAT:- It is not disputed by revenue that only section 23(1)(b) is applicable to the present case as it is also not the case of Assessing Officer as he has computed the house property income as per actual rent received. In this view of the situation, if the outgoings in respect of which additions have been deleted by CIT(A) were the liability of the assessee, the same should be excluded from the assessable income as the net amount only can be considered which is received by the assessee or is receivable by the assessee as per express provisions of section 23(1)(b). However, this fact has not been ascertained that whether the amounts claimed by the assessee and disallowed by the Assessing Officer in respect of car-parking, water charges and municipal charges and other charges were the actual liability of the assessee or not. This factual aspect has to be examined as per the terms of agreement as well as keeping in view the factual aspect of the matter. We, therefore, consider it necessary to restore these appeals as well as Cross Objections to the file of Assessing Officer to determine the fact that whether expenses claimed by the assessee on account of car parking, water charges, municipal charges and other charges were the liability of the assessee and were outgoings from the assessee’s rental income shown in respect of the property. If it is so, the same are rightly allowed by the CIT(A) as the assessee is entitled to get the same. The Assessing Officer will determine the house property income of the assessee in accordance with the above directions. We may point out here that the learned A.R. of the assessee also accepted that for the purpose of examining this factual aspect, the matter may be restored to the Assessing Officer. We order accordingly. The appeals filed by the revenue and Cross Objections filed by the assessee are considered allowed for statistical purposes.
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