COMMISSIONER OF INCOME TAX Vs. JACOB K JOSEPH

JUDGEMENT

(1.) THESE appeals are filed by the Revenue against the common order passed by the Tribunal, Cochin Bench, in I.A.A. Nos. 246 to 249/Coch/1996. The assessment years are 1987-88 to 1990-91. The question of law raised in these cases is whether on the facts and circumstances of the case, the assessee is entitled to claim deduction in respect of the payments made to the Co-operative Society Ltd., Bombay, on account of water charges, security charges, society, management expenses, etc. under S. 24(1)(iv) of the IT Act, 1961?" The facts of case are as follows :

(2.) THE assessee was having 1/3rd ownership in a flat in Anand Kamal Co-operative Housing Society Ltd., Bombay. While filing the return of income, the assessee claimed Rs. 25,560 as co- operative society dues for the asst. yrs. 1987-88 and 1988-89 and Rs. 92,052 for the other two assessment years in computing income from house property. These dues were towards the municipal taxes, water charges, security, society management expenses, repairs, etc. These returns were processed under S. 143(1)(a) of the IT Act (hereinafter referred to as 'the Act'). Thereafter, the AO initiated proceedings under S. 154 of the Act on the ground that the co- operative society's dues claimed by the appellant cannot be allowed as a deduction in computing income from house property.

(3.) AGAINST the above, appeals were filed. In the appeals, the appellate authority gave deduction of municipal taxes while computing the income from house property. Thus, municipal tax was allowed to be deducted. Against that an appeal was filed before the Tribunal. In para 3 of the order of the Tribunal, it is stated as follows :