LIQUIDATOR OF MAHAMUDABAD PROPERTIES PVT LIMITED Vs. COMMISSIONER OF INCOME TAX WEST BENGAL 11 CALCUTTA

JUDGEMENT

(1.) This appeal by special leave is directed against the judgment of the Calcutta High Court on a question concerning the computation of income from house property under the Income Tax Act, 1961.

(2.) The assessee, a private limited company, is the owner of the property described as 3, Gun Foundry Road. Originally it housed a jute baling press. The property was requisitioned by the West Bengal Government in 1951. It was released to the assessee on December 26, 1960, after being used for housing refugees. Evidently, the building had not received the care it deserved, for when the assessee resumed possession he found it in a sorry state.

(3.) The assessee filed an income-tax return for the assessment year 1962-63, (for which the previous year was the calendar year 1961), and the return recited that the annual value of the building was Rs. 1,23,672/-. However, on the ground that the building had remained vacant throughout the previous year, the assessee claimed a remission in the computation of the income of the entire annual value. The assessee also claimed a deduction on account of insurance premium and municipal taxes relating to the property.