TMI Blog2002 (1) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... 25, 2001, passed in I.T.A. No. 863 of 1998, on the file of the Income-tax Appellate Tribunal, Bangalore Bench, Bangalore, by which the Tribunal upheld the assessment order passed by the Assessing Officer quantifying the income from letting out the first floor of the premises owned by the assessee at Rs. 1,74,060 and subjecting it to tax under the Act. The assessee is an individual owning a prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d dismissed the appeal. The Tribunal also concurred with the assessment order. Hence, the present appeal. Heard learned counsel for the petitioner, Mr. S. N. Shyanbhog, and Mr. M.V. Seshachala, learned standing counsel for the Department. The income from property is an artificially defined income and the liability arises from the fact that the assessee is the owner of the property. The question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to such portion of such property as may be in the occupation of the owner for the purposes of any business or profession the profits of which are chargeable to income-tax. Where the property is not self-occupied or rented out, section 23(1)(a) provides the mode for the purposes of determining its annual value. It reads: "(1) For the purposes of section 22, the annual value of any property sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection (2) shall not apply if the landlord receives some benefit from the property. It reads: "(3) The provisions of sub-section (2) shall not apply if (a) the house or part of the house is actually let during the whole or any part of the previous year; or (c) any other benefit therefrom is derived by the owner." Barring the circumstance covered under sub-section (2) of section 23, no exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n M.C. Narasimhaswamy v. Poornegowda [1963] Suppl. MY. LJ 198, to drive home the point that in the case of a property which is mortgaged under an agreement whereunder the rent receivable by the mortgagor from the property is set off against the interest payable to the mortgagee on the mortgage amount, the annual property value cannot be charged to income-tax. Such a submission cannot be entertaine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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