LIQUIDATOR, MAHMUDABAD PROPERTIES LTD. Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF CALCUTTA
LIQUIDATOR, MAHMUDABAD PROPERTIES LTD.
COMMISSIONER OF INCOME TAX
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P.B. Mukharji,J. -
(1.) The Tribunal has referred in this Income -tax Reference under Sec. 256(1) of the Income -tax Act, 1961, the following question for a decision by this Court:
Whether on the facts and in the circumstances of the case and on the interpretation of section's 22 and 23 of the Income -tax Act, 1961, the Tribunal was right in holding that in computing the income from property the bona fide annual value of the property -at 3, Gun Foundry Road, Calcutta, has not to be taken and in disallowing the vacancy remission and other deductions in respect of the aforesaid property?
(2.) Even though the words of the question are not as clear as they could and should be, it is plain what the question asks. The question is whether there is an annual value of premises No. 3 Gun Foundry Road, Calcutta, and whether it is to be taken into account under Sec. 22 of the Income -tax Act, 1961. The Tribunal has held that such a property is outside the scope of Sec. 22 of the Act. The second part of the question is also plain and that is whether the Tribunal was right in disallowing the vacancy remission and other deductions in respect of the said property. It would have been better if instead of using the expression 'other deductions' the Tribunal had made it clear in the question what are the specific deductions in this case because they arc confined to three items, (i) the vacancy remission, (ii) the municipal taxes and (iii) the insurance premium which are claimed as statutory deductions under Ss. 23 and 24 of the Income -tax Act, 1961. These deductions are discussed in the order of the Income -tax Officer.
(3.) The fads giving rise to this question may be stated at the outset. The Assessee is a company in voluntary liquidation represented by a liquidator. The assessment year is 1962 -63 for which the previous year is the calendar year 1961. The Assessee filed a return of a total income on December 10, 1962, showing a total income of Rs. 2,469 and a loss under the head 'capital gains' of Rs. 6,390, and in that computation a loss was shown under the item "Less: loss under the head 'property' Rs. 15,821." In support of the claim of loss for Rs. 15,821 under the head 'house property' the Assessee worked out a total vacancy claim of Rs. 1,23,672 for the premises in this Reference, namely, 3 Gun Foundry Road. It is with the premises No. 3 Gun Foundry Road that this Income -tax Reference is concerned.;
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