TMI Blog2014 (9) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... er for the assessment year 2008-09 passed under section 143(3) vide order dated 30.09.2010, which was passed subsequent to the passing of the assessment order in the present case, whereby the deduction was allowed by the AO himself. Even for the sake of consistency also, the issue is decided in favour of the assessee. - I.T.A. No.: 2361/ Kol./ 2013 Assessment year : 2007-2008 - - - Dated:- 2-9-2014 - Shri Mahavir Singh, Judicial Member Shri Sunil Surana, F.C.A., for the appellant Md. Gayasuddin Ansari, JCIT, Sr. D.R., for the respondent ORDER Shri Mahavir Singh, This appeal filed by the assessee is arising out of the order of ld. Commissioner of Income Tax (Appeals), Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow such a deduction while computing the income under the head income from house property. In view of the above, the action of the AO is upheld . 5. Aggrieved, now the assessee came in appeal before the Tribunal. 6. Before me ld. Counsel for the assessee Shri Sunil Surana stated that the gross rent during the year received by the assessee was to the tune of ₹ 3,21,412/- and assessee has claimed electricity expenses paid at ₹ 2,35,666/- out of the same and after that computed the ALV of the property at ₹ 85,746/-. Ld. Counsel stated that the assessee s annual rent received was at ₹ 85,746/-. He stated that the provisions of section 23 clearly mandate computation of income from house property on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Hence he requested the Bench to consider the above case laws and the provisions of section 23 of the Act and decided the issue. 7. On the other hand, ld. Sr. D.R. argued that there is no provision in the Act to reduce the electricity expenses from the gross rent. He stated that once there is no provision in the Act for deduction of electricity expenses paid from the gross rent, no further reduction paid allowed for the same. 8. I have heard rival contentions and gone through the facts and circumstances of the case. I find from the facts of the case which are very clear that the assessee has claimed electricity charges paid from the gross rent and computed the ALV. I have gone through the provisions of sections 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. If it is composite it does not wholly arise from house property the admissibility as under sections 23 and 24 are not the end of the category of allowable deductions. If these two sections are not the end of the categories then the question sought to be referred to us is a mere academic question . 9. Further this issue is considered by Hon ble Delhi Bench of this Tribunal in the case of Neelam Cable Manufacturing Co. vs.- ACIT (1997) 59 TTJ Del. 474, wherein the issue was decided as under:- 2.9 We, therefore, confirm the order of the CIT(A) holding that such income is assessable under the head Income from house property. 2.10 We will now consider the assessees claim with regard to grant of deduction in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty will have to be taken into consideration. It will, therefore, be necessary to deduct the amount of security service charges of ₹ 30,012 incurred by the assessee while taking the actual amount of rent receivable in respect of the property for determination of the annual value as per s. 23. The AO is, therefore, directed to grant deduction in respect of ₹ 30,012. Similarly Hon ble Mumbai Bench of this Tribunal in the case of Shri Saif Ali Khan vs.- ACIT in ITA No. 1653/Mum./2009 vide order dated 29.06.2011 has decided the issue as under:- 18. In Realty Finance Leasing (P) Ltd. vs. ITO (2006) 5 SOT 348 (Mum.), the Tribunal, after relying on the decision in Praveen Kumar vs. ITO (ITA No.6159 (Mum) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in CIT vs. R.J. Wood P. Ltd. (2011) 334 ITR 358 (Delhi) wherein it has been held that the maintenance and other charges paid by the assessee were deductible from the rent while computing the annual letting value. Accordingly, the AO is directed to allow the same. Ground no. 2 taken by the assessee is, therefore, allowed . 10. I find that for computing the ALV the relatable expenses that as in the present case the electricity charges paid by the assessee has to be deducted from the gross rent in view of the above proposition allowed by the Hon ble Calcutta High Court and various Benches of this Tribunal. One more aspect to this issue is that even for the sake of consistency from last 30 years, Revenue is allowing the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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