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2016 (2) TMI 1273 - ITAT MUMBAIIncome from house property computation - municipal taxes and maintenance charges deductibility while determining the income from house property - HELD THAT:- The factum of payment of taxes/maintenance charges is not in dispute. It is also noted from para 2 of the assessment order itself that the assessee furnished the necessary details as called for and after due verification, the same were kept on record. In the same breath, the ld. Assessing Officer and also the ld. DR, asserts that necessary details were not furnished. This assertion is contradicted by the finding contained in para -2 of the assessment order itself. Keeping in view, the totality of facts and the circumstances, we are of the view that income from house property is required to be computed on the basis of actual/bonafide rental value of letting out of the property. The municipal taxes and maintenance charges, which the assessee has undisputedly paid, has to be reduced from the rental income. Thereby, to ascertain the actual value such charges has to be excluded from the rent. Our view find support from the decision in the case Neelam Cable Manufacturing Company [1997 (8) TMI 102 - ITAT DELHI-A] and another decision of the Mumbai Bench of the Tribunal in Bombay Oil Industries [2000 (11) TMI 1225 - ITAT MUMBAI] in Sherrif Construction [2008 (12) TMI 761 - ITAT, BANGALORE]. The ratio laid down in CIT vs Dalhousie Properties Ltd. [1984 (8) TMI 2 - SUPREME COURT] holding that liability in respect of municipal of taxes which an owner has to discharge is eligible for deduction. Disallow interest paid for housing loan - Non following the procedure laid down in section 251(2) denying opportunity to the assessee of being heard - HELD THAT:- As per section 251, which deals with power of the Ld. First Appellate Authority, sub-section (2) says that the Commissioner (Appeals) shall not enhance an assessment or a penalty or reduce the amount of refund, unless the appellant has had a reasonable opportunity of showing cause against such enhancements or reduction. It is also noted that in the impugned order, even there is no whisper to the effect that any show-cause notice was issued to the assessee. Even, from Form No.35, no such ground was raised. The Ld. Commissioner of Income Tax (Appeals) has committed jurisdictional error while coming to a particular conclusion. The Ld. Commissioner of Income Tax (Appeals) neither called a remand report from the Assessing Officer nor asked the assessee to substantiate the issue, if, he was not satisfied with the assessment so framed. Even otherwise, no person should be condemned unheard unless and until opportunity is provided to him. The ratio laid down in Anusuya Suren Mirchandani vs ACIT [2013 (11) TMI 1660 - ITAT MUMBAI]supports the case of the assessee. Identical ratio was laid down in Dr. Yogiraj Sharma vs ACIT [2014 (11) TMI 1191 - ITAT INDORE]. Following the aforesaid decisions, this ground of the assessee is allowed.
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