COMMISSIONER OF INCOME TAX Vs. SHYAMA DEVI DALMIA

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, the following question of law has been referred to this court for the assessment year 1982-83 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in directing the Income-tax Officer to allow deduction under the second proviso to Section 23(1) of the Income-tax Act, 1961, in respect of the portion of property used by the bank ?"

(2.) The facts in brief are that, in the assessment year 1982-83, the asses-see claimed deduction of Rs. 6,000 out of the house property income under the second proviso to Section 23(1) of the Act. The Income-tax Officer rejected this claim of the assessee as, according to him, four floors of the building stood let out to the bank and were not utilised for "residential purposes". On appeal, the Commissioner of Income-tax (Appeals) confirmed the action of the Income-tax Officer.

(3.) Being aggrieved, the assessee preferred a second appeal before the Tribunal. For the following reasons, the Tribunal held that the assessee was entitled to deduction under the second proviso to Section 23(1) of the Act :