S.23 : Income from house property- Annual value- Surcharge collected from tenants
Assessee being the lessor and/or landlord and/or owner is under obligation to pay the consolidated rates of taxes on the land and buildings – Under the conjoint reading of the provisions of the KMC Act the owner is enjoined with statutory right to recover commercial surcharge from occupants and on recovery of the same it is his obligation to pay to the corporation authorities – It is not correct to contend that the surcharge does not have any correlation with the rate. Thus, assessees contention that the payability of the surcharge by the tenant should be kept outside the purview of the rental income from house property as it is not really appropriate or retained by the owner as ultimately it has to be paid or it has to be worked out otherwise by way of agreement is not sustainable. Consequently the moment the commercial surcharge is recovered irrespective of the provisions of the agreement entered into by and between the landlord and tenant it immediately becomes exigible to tax as rental income from house property for agreement binds the parties thereto and it becomes irrelevant the moment it is found to be in conflict with legal provision on the subject. (A.Y. 1997 – 98)
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