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TMI Blog2012 (7) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Income from House Property". "1.1 The learned Commissioner of Income Tax (Appeals) erred in not appreciating the fact that during the course of assessment proceedings itself the appellant had clarified that the amount of Rs. 1,01,717/- being society charges paid in respect of property given on leave and licence by the appellant to the third party should be allowed as a deduction while computing income under the head 'Income from House Property" and not while computing "Income from Business". "2. The learned Commissioner of Income Tax (Appeals) erred in confirming disallowance of Rs. 6,29,081/- from Generator Running Expenses made by the assessing officer on an adhoc basis" "2.1 The learned Commissioner of Income Tax (Appeals) erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses. Thus, the amount of Rs. 1,01,717/- is herewith disallowed as deduction from the income of the assessee". 3. In appellate proceedings, CIT(A) decided the issue in the following manner: "I have carefully considered the facts and submissions and also perused the order of the AO. I find that the AO has discussed this issue by stating that an amount of Rs. 1,01,717/- as society charges in respect of Mehta Mahal Property under the head 'Repairs and Maintenance' is debited. The assessee was asked to explain how an amount which has no connection whatsoever with the business of the assessee can be allowed as deduction. The assessee stated that this amount was spent as housing society charges in respect of property rented out and relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the same is pertaining to the Mehta Mahal Property and a deduction once found inadmissible under one head cannot be treated as admissible under another head of income. Therefore, I do not find any infirmity in the action of the AO in disallowing the society charges of Rs. 1,01,717/-, the disallowance made is upheld. This ground is decided against the appellant". 4. Before us, Authorised Representative (AR) submitted that actual rent received by the assessee was affected by the payment made to society, that definition of the ALV same even after amendment to Section 23, that assessee was entitled to claim the deduction. Departmental Representative (DR) submitted that issue was covered in favour of the Revenue. He relied upon case of Rare R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e society charges from the gross rent. As per the provisions of section 23 of the Act, the Annual Letting Value of the property is determined. As per the fiction created in cl(a) of section 23(1), the fair market value also can be treated as the annual letting value if the same is more than actual rent received or receivable. Section 24 provides the rights of the assessee to claim the deduction. As per the law applicable for the A.Y. 2005-06 following two deductions are available to the assessee:- (i) some equal to 30% of the annual value and (ii) Interest on the borrowed capital if the same is used for acquiring, constructing or renovating the property Other than this, no other deduction is allowed. The decisions relied on by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced his old generator with a new one and no additional generator was purchased during the year. The generator is of the capacity of 35 KWA and keeping in view the average diesel consumption of a generator, the diesel consumption expenditure claimed is abnormally high. In view of the above the diesel expenditure claimed by the assessee is restricted to 2 lakh and balance is disallowed. The appellant in the above submission has reiterated what has been stated before the AO who has reproduced the appellant's submission in the order itself. In none of the submissions the appellant has either disputed the observations of the AO in the assessment order such as upto the first nine months i.e., upto December, 2005 diesel expenses were only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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