COMMISSIONER OF INCOME TAX Vs. ELIZABETH VARGHESE

JUDGEMENT

(1.) By these three connected references made by the Income Tax Appellate Tribunal, Cochin Bench (hereinafter called the Tribunal) under S.256(1) of the Income Tax Act, 1961 for short, the Act the following common question of law has been referred to this court as arising out of the order dated 9th December 1977 passed by the Tribunal in I. T. A. No. 939 to 941/Cochin/1976-77 dismissing the appeals filed by the department and upholding the view taken by the Appellate Assistant Commissioner that the respondent assessee is entitled to the benefit of S.23(1)(b) of the Act in respect of 14 rooms contained in a building treating them as 14 separate residential units:

(2.) The assessment years with which we are concerned in these cases are 1973-74, 1974-75 and 1975-76.

(3.) During the year ending 31st March 1973 the assessee completed the construction of a building bearing door No. XXXVI/1206-C consisting of 14 rooms, 4 on the ground floor and 5 each on the first and second floors with a bath room cum lavatory attached to each room. The assessee had let out the rooms to different tenants on a monthly rent of Rs. 125 per room. For the purposes of the Kerala Municipal Corporations Act the entire building had been assigned only a single door number and for purposes of property tax assessment the entire building was treated as one unit. There was only one meter for the whole building for registering the electricity consumed and, likewise, only a single water connection from the corporation with one meter for measuring the quantity of water consumed.