TMI Blog1983 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(2) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), and poses the following question for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in directing the Income-tax Officer to exclude the portion of a sum of Rs. 5,977 on account of stamp duty, etc., to arrive at the annual letting value of the property ?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., equally. A sum of Rs. 11,953 was spent towards these charges and the assessee's half share therein came to Rs. 5,977. The assessee claimed this sum of Rs. 5,977 as a deduction from its gross annual rental value. The ITO disallowed the claim of the assessee and the same was upheld in appeal by the AAC. The assessee went in second appeal before the Income-tax Appellate Tribunal (for short c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the determination of the annual letting value meant to secure a fair rent. The Tribunal in this view of the matter allowed the deduction of this expenditure of Rs. 5,977 from the gross rent in order to arrive at the reasonable annual letting value. The annual value of the property, which is the subject of charge, was originally defined in s. 23(1) as " The sum for which the property might r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure wherefor deduction can be claimed are exhaustive. The expenses incurred in providing the proper stamp paper in the case of a lease or agreement to lease is by virtue of the provisions contained in s. 29 of the Indian Stamp Act, 1899, and is on the lessee or intended lessee, in the absence of an agreement to the contrary. It may be for this reason that the Legislature did not include such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is deemed to be the same for which the property might reasonably be expected to let from year to year. It is a notional income to be gathered from what a hypothetical tenant would pay which is to be objectively ascertained on a reasonable basis. The annual value cannot be left to fluctuate when the lease is for a period of five years. We, therefore, answer the reference in the negative, i.e., i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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