- (1.) This appeal is preferred by the Revenue against the judgment of the Calcutta High court answering the question referred to it in favour of the assessee and against the Revenue. The question referred under Section 256 (1 of the Income Tax Act was: "Whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the statutory allowance mentioned in Section 23 (2 of the Income Tax Act, 1961 should be allowed every time separately in computing the income from house property falling to the share of each of the co-owners including the assessee -
(2.) The assessment year relevant herein is 1962-63. The respondent was the owner of an undivided one-third share in a house property during the relevant period. He along with his brother and other co-sharers was occupying the house for his own residence. In the respondent's assessment, the ITO deducted the amount specified in Ss. (2 of Section 23 from out of the annual letting value of the house and then apportioned the balance ALV among the co-owners. The respondent's case was that the deduction provided for by Section 23 (2 should be given separately to each co-owner. It is the said dispute which is reflected in the question referred for the opinion of the High court.
(3.) We may state immediately that such a dispute would not really arise after from the assessment year 1976-77 and onwards because of the insertion of explanation in Section 26. Disputes had arisen before the said explanation was inserted by Taxation Laws (Amendment) Act, 1975.;