As per sec 23(1) deduction from house property income can be claimed only under sec 24

Last updated: 30 April 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Analysis of the case found the following ... Ground no. 1 is regarding the disallowance of interest u/s. 14A. We have heard the learned AR as well as the learned DR and considered the relevant material on record. Both the parties have agreed that this issue is required to be reconsidered and decided at the level of the Assessing Officer in the light of the decision of Hon'ble Jurisdictional High Court in the case of Godrej & Boyce Manufacturing Company Ltd. vs. DCIT reported in 328 ITR 81. Accordingly, we set aside this issue to the record of the Assessing Officer for deciding the same in accordance with the decision of Hon'ble High Court (supra). Ground no. 2 is regarding the disallowance of brokerage and commissioner paid for lease and sale of the space. The assessee debited to the profit and loss account the brokerage and commission paid for acquisition of the property and claimed the deduction of the same against the rental income. The Assessing Officer denied the claim of the assessee and held that section 24 of the Act does not permit the payments of brokerage as deduction.

Citation :
M/s. Scaffold Properties Pvt. Ltd. 192, Samuel Street,1st floor, Masjid Bunder,Mumbai-400 009 PAN NO: AAGCS 1847 J (Appellant)Vs.The Assistant Commissioner of Income Tax 5(3),Aayakar Bhavan, M.K. Road,5th Floor, R.No.583,Mumbai-400 020 (Respondent)