TMI Blog2013 (10) TMI 1491X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 2. Facts of the case, in brief are: The assessee is deriving income from house property known as Sujan Singh Park Complex. Assessee receives composite rent which constitutes elements of actual rent on account of letting out of house property, electricity charges, salary of watchmen and maintenance staff etc. It is claimed by the assessee that it has been assessed under the head income from house property only on the actual rent received for letting out of house property and the other charges like payment of house tax, provision for water, electricity, salary of watchmen and maintenance staff etc. has been excluded from the definition of ALV. Assessee has long history of framing assessment under the head house property income . As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant was not claiming deduction correctly. After the Finance Act, 2001, the AO stated that only deduction of 30% of the annual value would be allowed. No other expenditure would be allowed. The ITAT is the final fact finding body and its findings are binding unless the case is distinguished on fact. In AY 1997-98, the AO had accepted the method of computation regularly employed by the appellant for its income under the head House Property following the decision of ITAT in earlier asstt. Years. In the AY under appeal, the action of the AO in not following the Ld. ITAT without bringing out any discrepancy in the facts cannot be justified. Accordingly it is held that the computation of 'House Property' income in this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ** ** (iv) where the property is subject to an annual charge (not being a charge created by the assessee voluntarily or a capital charge), the amount of such charge; (v) where the property is subject to a ground rent, the amount of such ground rent; (vi) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital.' After the amendment: '24. Income chargeable under the head Income from house property shall be computed after making the following deductions, namely:- (a) a sum equal to thirty per cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deduction from 1/4th to 30% of the annual value and various other deductions which were available were discontinued, like premium for insurance, annual charge other than those voluntarily created, capital charge, ground rent and any then revenue or taxes levied by the State Government. Assessing officer failed to appreciate that none of these expenses either form a part of the composite rent received or a part of the deductions claimed by the appellant. The amendment effective from April 1, 2002 has no impact on division of composite rent and scope of ALV. It is pleaded that this contention has been accepted by the tax authorities in the past. The statutory deduction of 30% on which a degree of inflexibility was introduced by the above am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed these claims of the assessee and it is only in A.Y. 2009-10 that a U turn has been taken without there being no change in facts and circumstance. In AY 1985-86 the ITAT decided the issue in assessee's favour, on Revenue's reference the following question of law was referred to Hon'ble Delhi High Court u/s 256(1): Whether, on the facts and in the circumstances of the case, the ITAT is correct in allowing deductions for salaries paid to watchman, sweepers, malis etc. despite the non-admissibility of said expenses from the computation of income from house property and the non-applicability of the principle of res judicata to income-tax proceedings. 4.3 By this reference, the order of the ITAT in favour of the has att ..... X X X X Extracts X X X X X X X X Extracts X X X X
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