TMI Blog2020 (4) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... hat no further deduction is allowed towards any expenses, when statutory deductions @ 30% is provided u/s 24(a) out of rental income. But, the facts remains that, deduction claimed by the assessee includes amount paid towards local taxes is not emanating from the records. It is the claim of the assessee that it includes municipal taxes, whereas the Ld. AO noted that it is paid for maintenance of the property. Therefore, we are of the considered view that the issues needs to go back to the file of the Ld. AO to ascertain the correct facts with regard to nature of expenses. If, the amount paid to society charges includes municipal taxes levied by the local authorities, then to that extent the Ld. AO is directed to allow deductions out of rent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 2014-15. Since, the facts are identical and issues are common, for the sake of convenience, these appeals were heard together and are disposed-off by this consolidated order. 2. The assessee, has more or less raised common grounds of appeal for both AY s. Therefore, for the sake of brevity grounds of appeal filed for AY 2013-14 are reproduced as under:- 1. Whether on facts and circumstances of the case. The Ld.CIT(A) was correct in confirming the disallowances of ₹ 83,389/- paid as society charges while determining the annual value of the flat. 2. Whether on the facts and circumstances of the case. The Ld.CIT(A) was correct in confirming the addition of ₹ 13,605/- paid as donation to local Ganesh Mandals etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permitted. Similarly, the Ld. AO noticed that the assessee has claimed deduction for a sum of ₹ 13,605/- under the head donations, but on verification, it was noticed that such donations has been paid to local organizations for Genasha festival. Hence, the same cannot be allowed as deductions. When the issue has been discussed with the Ld. AR for the assessee, he has agreed for disallowances, but requested for deductions u/s 80G of the I.T.Act, 1961. Since, the assesee has not claimed deductions u/s 80G by filing revised return, the Ld. AO has not consider the claim of the assesee for deductions towards donations u/s 80G of the I.T.Act, 1961. 4. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld.CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Ld.CIT(A) noted that expenditure incurred is not for business purpose, but it is in the nature of personal expenses, because said donations are meant for religious functions. Therefore, the same cannot be allowed as deductions. He, further observed that assesse could have claimed deduction u/s 80G, if the local mandals had the requisite approvals as required under the Act. In absence of the same, the Ld. AO is correct in disallowances of donations of ₹ 13,605/-. Aggrieved by the Ld.CIT(A), the assessee is in appeal before us. 7. The first issue that came up for our consideration from ground No. 1 of assesee appeal is disallowances of society maintenance charges claimed by the assesee. The facts with regard to the impugned di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s @ 30% on rental income, further deductions towards society charges out of rental income is not permitted. 10. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. As per the provision of section 23 of the Act, the annual value of the property shall be actual rent received less, the tax levied by any local authority, in respect of the property so let out. In computing income from house property, the assessee can claim deductions for property taxes levied by the local authority, if such taxes has been actually paid by him during the relevant financial year. In addition, the statutory deductions @ 30% as provided u/s 24(a) and other deductions like interest is permissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... local authorities, then to that extent the Ld. AO is directed to allow deductions out of rental income. If the amount relates to maintenance of property, then the Ld. AO is right in denying deductions for said amount out of rental income. 11. The next issue that came up for our consideration from ground No.2 of assesse appeal is disallowances of donations of ₹ 13,605/-. The assessee has claimed deductions for donations paid to local mandals such as Ganesha mandals etc,. The assesee claims that these are compulsory donations one has to paid to local mandal in order to run business smoothly. We find that it is a general practice prevailing in business that in some occasions, the business people needs to pay certain donations to loca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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