TMI Blog2013 (7) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... orrowed capital - Remaining expenses claimed by the assessee do not qualify for deduction from the ALV of the property as these expenditure are incurred by the assessee are not permissible under the provisions of sections 23 and 24 of the Act – Decided against the Assessee. Principle of estopple and res-judicata - Since all similar expenses have been allowed in the earlier years - The assessee is entitled for deduction of all the impugned expenditure this year also – Held that:- Principle of estoppel or res-judicata is neither applicable against the statute nor against the settled position of law – Decided against the Assessee. - ITA No. 345/Mum/2012 - - - Dated:- 10-7-2013 - Shri P. M. Jagtap And Dr. S. T. M. Pavalan,JJ. For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the total income of the assessee as these expenses are not allowable in view of sections 23 and 24 of the Income Tax Act, 1961. On appeal, the Ld. CIT(A) confirmed the action of the AO. Aggrieved by the impugned decision, the assessee has raised this ground in the appeal before us. 2.2 Before us, the Ld.AR has stated that the tenants are protected under the Bombay Rent Act, wherein the rent is already fixed by the Bombay Municipal Corporation of Greater Bombay (BMC). The Landlord is not allowed to charge the rent as per market value. All the expenses mentioned above incurred by the assessee are must and landlords are compelled and bound by law to provide utilities in the building. Any person who is in search of place will look for facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard both the parties and perused the material on record. As regards the contention of the Ld.AR that the annual letting value of the house property has to be estimated at the reduced value only after deducting the expenditure in so far as the same are incurred necessarily for the enjoyment/user of the relevant property as decided by the ITAT in the case of J.B. Patel Co (Co- Owners) reported in (2009) 118 ITD 556, it is also relevant to mention the decision of the ITAT in the case of Piccadily Holiday Resorts Ltd Vs DCIT reported in (2005) 94 ITD 267 (DEL) in which the present AM is also a party to the said order. In a detailed discussion, in the context of the similar contentions preferred by the Ld.AR, the ITAT in the case of Piccadily ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue whether the salary paid to the caretaker is an admissible deduction from the annual rent to determine the annual value of the property under section 23 of the Act, has held that in determining the annual value, the salary paid to the caretaker cannot be taken into account as there is no specific item for deduction of the salary of a caretaker from the annual value of the property which is let out and it does not, in any way, affect the determination of the annual value. The aforementioned decisions of the High Courts fortifies the legal position that as per the provisions of sections 23 24 of the Act, income chargeable under the head 'income from house property' shall be computed after making the deductions of municipal taxes paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aragraph, we are of the considered opinion that the remaining expenses claimed by the assessee do not qualify for deduction from the ALV of the property as these expenditure are incurred by the assessee are not permissible under the provisions of sections 23 and 24 of the Act. 2.3.2 As regards the contention of the assessee that since all similar expenses have been allowed in the earlier years by the Ld.CIT(A), the assessee is entitled for deduction of all the impugned expenditure this year also, we do not agree with the said contention as the principle of estoppel or res-judicata is neither applicable against the statute nor against the settled position of law. In view of that matter, we do not find any infirmity in the order of the Ld.C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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