The Commissioner Of Income Tax v. Shri K. M. Powvalla

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 622of 1987 The Commissioner of Income Tax ... Applicant. vs. Shri K. M. Powvalla ... Respondent Mr. Ashok Katangale, Sr. Counsel with Mr. D.A. Dubey i/b. K.C.Sidhwa for Applicant Mr. J. D. Mistry i/b. Crawford Bailey & Co., for Respondent. CORAM: V. C. DAGA AND A. S. AGUIAR JJ.Date: 19[th] July, 2005. P. C.: 1. By this reference under section 256 (1) of the Income Tax Act, 1961, the Income Tax Appellate Tribunal has referred the followingquestions of law for the opinion of this court: “1. Whether on the facts and circumstances of thecase, the Tribunal was correct in law in holding thatcharges payable to the society on account of security,common lighting, common garden etc., is allowable as adeduction from the annual letting value adopted on thebasis of Municipal Rateable value in computing incomefrom self – occupied property? 2. Whether on the facts and circumstances of the case,the Tribunal was correct in law in deducting a sum otherthe Tribunal was correct in law in deducting a sum other than taxes levied by a local authority to arrive at theannual letting value in terms of section 23(1) read withthe first proviso to it and section 23(2)(1) of the IncomeTax Act, 1961?” 3. Heard learned counsel for both sides. Perused referenceproceedings. proceedings. 4. For the reasons recorded by us in our judgment dated 1[st] July 2005passed in Income Tax Reference No. 397 of 1988 (C.I.T. vs. M/s.Pithwa Engg. Works), wherein we have relied upon decision of thiscourt in the case of Commissioner of Income-tax v/s. CamcoColour Co., reported in ITR Vol. 254 (2002), page 565 we do notthink it necessary to answer the reference made to this Court for theAssessment Years 1976-77 and 1977-78, having negligible taxeffect. Accordingly, reference stands returned unanswered withno order as to costs. passed in Income Tax Reference No. 397 of 1988 (C.I.T. vs. M/s.Pithwa Engg. Works), wherein we have relied upon decision of thiscourt in the case of Commissioner of Income-tax v/s. CamcoColour Co., reported in ITR Vol. 254 (2002), page 565 we do notthink it necessary to answer the reference made to this Court for theAssessment Years 1976-77 and 1977-78, having negligible taxeffect. Accordingly, reference stands returned unanswered withno order as to costs. (A. S. AGUIAR J.) (V. C. DAGA J. ) -x-