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The Tax PublishersITA No. 7001/Mum/2018
2021 TaxPub(DT) 0166 (Mum-Trib)INCOME TAX ACT, 1961
Section 23 read with Section 24(a)
Where assessee firm obtained a building on lease from Bombay Port Trust (BPT), and rented it out to various parties and offered rental income after claiming deduction of lease rent paid to Bombay Port Trust (BPT), AO was precluded from holding that assessee could not simultaneously claim statutory deduction under section 24(a) and lease rent, and it was held that assessee was entitled for claim of deduction of lease rent paid to the Bombay Port Trust (BPT) against the Leave and License fee/rent received from the tenants in determining the annual value of the property.
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Income from house property - Computation of annual value - Assessee rented out building taken on lease from Bombay Port Trust (BPT) - Simultaneous claim of deduction towards lease rent paid to Bombay Port Trust (BPT) and standard deduction under section 24(a)
Assessee-firm had obtained a building on lease from Bombay Port Trust (BPT), which was given on rent to various parties/tenants. Assessee offered rental income after claiming deduction of lease rent paid to Bombay Port Trust (BPT). AO alleged that assessee was not eligible to claim the deduction of lease rent paid to the BPT on allegation that it claimed statutory deduction of 30% of NAV under section 24(a) and therefore no other deduction was allowed. Held: Assessee firm had to pay the lease rent of building to its owner Bombay Port Trust (BPT) and also assessee had entered into the leave and license agreement with tenants and receiving the rent. Referring to the factual aspects and provisions of section 23(1)(b), Tribunal opined that assessee was entitled for claim of deduction of lease rent paid to the Bombay Port Trust (BPT) against the Leave and License fee/rent received from the tenants in determining the annual value of the property.
REFERRED : CIT v. RJ Woods P. Ltd (2011) 334 ITR 358 (Del) : 2011 TaxPub(DT) 1492 (Del-HC), DCIT v. State Trading Corporation of India Ltd. (ITA No. 822/Del/2010 dated 28-10-2011), (Del-Trib), M/s. Suman Didwania v. ACIT (ITA No. 5805/Mum/2010, dated 15-2-2012), Mum Trib., Krishna Bhojwani v. ACIT (ITA No. 1463/Mum/2012, dated 3-7-2017), Sharmial Tagore v. JCIT (2005) 93 TTJ 483 (Mum) : 2005 TaxPub(DT) 1877 (Mum-Trib) and ITO v. Gopichand P. Godhwani (2005) 1 SOT 374 (Mum) : 2005 TaxPub(DT) 0766 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, MUMBAI BENCH
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