TMI Blog1985 (1) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... m other properties." The second point raised by the assessee was that the fair rental income of the Bombay flat could be only Rs. 350 per month. The ITO did not agree with either of these two points. He held that the ceiling of 10 per cent prescribed under the proviso to s. 23 applies only to one dwelling house. Accordingly, he gave the benefit of the dwelling house under the said proviso to the Calcutta flat only. Regarding the Bombay flat, he held that the notional income therefrom need not be limited to 10 per cent of the other income. Secondly, he considered the estimated income of Rs. 3,000 as shown by the assessee to be low and estimated the same at Rs. 90,000. Accordingly, the ITO took the notional income form the dwelling house at B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , i.e., for the purpose of reducing the income therefrom to one-half or Rs. 1,800 whichever is less. Sub-cl. (ii) of s. 23(2) does not serve any other purpose apart from limiting the operation of sub-c. (i) of s. 23(2) to one chosen house. Sub-cl. (ii) does not extend to the proviso which follows thereafter. He contended that the proviso speaks of cls. (i) and (ii) which means that the income from all dwelling houses taken together should be llimited to 10 per cent of the other income. Secondly, he contended that even if there is any doubt in this regard, the assessee should get the benifit because of the decision in the case of CIT vs. Vegetable Produced Ltd. (1977) CTR (SC) 177 : (1973) 88 ITR 192 (SC). 5. Shri. S. Dasgupta, the ld. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1976. This sub-section reads as under: "(2A) For the removal of doubt, it is hereby declared that where the property consists of more than one house and such houses are in the occupation of the owner for the purpose of his own residence the annual value of the house, other than that the annual value of which is required to be determined under cl. (ii) of sub-s. (2), shall be determined under sub-s. (1) as if such houses had been let." A mere reading of the above sub-s. (2A) is enough to show that the dwelling house other than the one chosen under s. 23(2)(ii) comes under sub-s. (2A) and the deemed income from such house or hoses shall be determined under sub-s. (1) as if such house head been let. Hence, there is no doubt that the bene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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