TMI Blog2010 (4) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... rated in section 24 of Income Tax Act, 1961. 2. Brief facts are that it is noted by the AO in the assessment order that while computing income from house property, the assessee has claimed deduction on account of various expenses aggregating to ₹ 953791/-. The AO was of the opinion that for the purpose of computing income form house property, only standard deduction as per section 24 of the I.T. Act, 1961 to the extent of 30% of the annual value can be allowed and no deduction is allowable for any other expenses except interest on borrowed funds. He disallowed this claim of the assessee. In addition to this, it is also noted by the AO that the assessee has also claimed set off of loss of ₹ 33,359/- which is nothing but an ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al value of the house property should be assumed at the reduced value i.e. after reducing expenses incurred in providing extra services from rental income. In the present case also, the facts are similar. It is claimed by the assessee that the assessee is providing additional services such as lighting in common areas during working hours, pest control services periodically for all common areas, cleaning services for common areas and security services. The rental income declared by the assessee is composite rental income. The rental income declared by the assessee is composite rental income including charges on account of these additional services being rendered by the assessee. For the purpose of computing income from house property, rental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udes ₹ 15,000/- on account of audit fees, ₹ 5533/- on account of bank charges, ₹ 5877/- on account of fees and subscription, ₹ 1129/- on account of preliminary expenses written off and ₹ 1102/- on account of legal and professional fees. There are some petty expenses also under the head telephone, postage and telegram, printing and stationery, business promotion etc., CIT(A) has followed a decision of coordinate bench of the Tribunal rendered in the case of Gojer Brothers Pvt. Ltd. vs. ITO, ITA No.2606/Kol./2000 dated 4.9.2003 in which it was held by the Tribunal that the expenses which are necessary for the purpose of maintaining registered office of a company to continue its existence and to comply with the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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