TMI Blog2004 (6) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee claimed deduction of Rs. 1,70,397 as follows : Rs. 1. Local taxes 3,750 2. Non-occupancy charges levied by society 1,17,832 3. Maintenance charges 48,785 2. While completing the assessment, the AO disallowed the claim for non-occupancy charges and maintenance charges on the ground that these expenses were not m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while arriving at the annual letting value of the property under Section 23. Following the said order, we hold that the maintenance charges have to be deducted even while determining the annual value of the property under Section 23. 4. As regards the non-occupancy charges, the claim is that the rent received cannot take the character of rental income till the obligation of the assessee on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taken into account and if it is taken into account, the annual letting value would be considerably reduced because the payment of non-occupancy charges is inextricably linked with the letting out of the property. We find force in the assessee's contention. Though there is no provision in Section 24 for deduction of the non-occupancy charges, we are of the opinion that the non-occupancy charges w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs and costume expenses of the assessee. The argument before us was that the AO has himself allowed 2/3rd of the expenses and there was no justification for disallowing l/3rd thereof. However, these are personal expenses and we do not see how they can be allowed as a deduction even though the AO has himself allowed 2/3rd thereof. In our opinion, the expenses cannot be allowed at all. However, sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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