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2017 (11) TMI 110 - AT - Income TaxComputation of income from property - disallowing the maintenance charges paid in respect of let out properties - Held that:- We find that the issue raised in this ground is covered by the decision of the Tribunal in the case of Ms.Allo Bejan Daver (2011 (4) TMI 1277 - ITAT MUMBAI) wherein it has been held that the maintenance charges paid to the society are to be reduced the rent received while calculating the ALV u/s 23(1) of the Act. Also in case of Barodawala Properties Ltd. (2001 (12) TMI 875 - ITAT MUMBAI ) is concerned, we find that the Tribunal in subsequent judgments have held that while calculating annual value of the let out property, maintenance charges paid to the society by the assessee is admissible deduction from the annual let out value u/s 23(1)(b). - Decided in favour of assessee Damages received by the assessee from the licensee for the period falling beyond the period of the leave and license agreement - Held that:- The undisputed facts of the case that the licensee did not vacate the flats as per the terms of leave and license agreement and as a result the assessee received ₹ 10,40,000/- as damages pertaining to that period when the licensee occupied the premises without any valid authority as per the licensee deed dated 31.5.2006 and the said damages related to the period after 31.5.2006. We find merit in the argument of AR that the said receipt is a capital receipt and not liable to tax. Thus direct the AO to exclude the amount of ₹ 10,40,000/- from the ALV. Addition made on account of notional interest @ 10% on interest free security deposits received by the assessee while computing the annual value of the residential properties u/s 23 - Held that:- As decided in assessee's own case actual rent received by the assessee far exceed the Municipal ratable value and, therefore, the annual value of the property need to be computed under section 23(1)(b) of the Income Tax Act, 1961. This Court in the case of Commissioner of Income Tax Vs. J.K. Investors (Bombay) Ltd. [2000 (6) TMI 9 - BOMBAY High Court ] has held that while computing the annual value under Section 23(1)(b) of the Income Tax Act, 1961 the notional interest on the security deposit / advance rent cannot be included in the income from house property under section 23( 1 )(b) of the Income Tax Act.
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