TMI Blog1988 (12) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... salary paid to the caretaker against the income from house property. The Income-tax Officer negatived this claim of the assessee. The assessee appealed to the Appellate Assistant Commissioner who was of the opinion that engagement of a caretaker was necessary for the purpose of earning rent from the property and that the claim of the assessee was reasonable. He, therefore, directed the Income-tax Officer to allow the deduction claimed by the assessee. Against the said order of the Appellate Assistant Commissioner, the Revenue preferred an appeal before the Tribunal. It was contended on behalf of the Department that the Appellate Assistant Commissioner was in error in allowing the claim inasmuch as section 24 of the Income-tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim is to be allowed in terms of section 24 of the Act. Thus, in our opinion, the order of the Appellate Assistant Commissioner appears to be reasonable. Accordingly, we confirm his order and dismiss the departmental appeal. We are, however, unable to sustain the reasoning or conclusion of the Tribunal. Section 22 provides that the annual value of a property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property". Section 23(1)(a) provides that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be reduced by the amount of municipal taxes if the property is let out. The deductions under section 24(1) are to be made from and calculated on the basis of the annual value so determined. The deductions allowable are, inter alia, for repairs and collection charges. There is no specific item for deduction of the salary of a caretaker from the annual value of the property which is let out. It does not, in any way, affect the determination of the annual value. In our view, in determining the annual value, the salary paid to the caretaker cannot be taken into account. For the reasons aforesaid, the question in this reference is answered in the negative and in favour of the Revenue. There will be no order as to costs. J. N. HORE J. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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