| Case ID |
4284f26a-ef12-419e-a23b-e1eacd49e145 |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that a reading of the provisions of the Explanation to section 23(2) leaves no doubt that the applicability of the second proviso to section 23(1) is excluded in computing the annual value of a self-occupied residential unit. Hence, the Tribunal was correct in allowing the set off of the loss related to house property against income from other sources. The question of law referred was answered affirmatively in favor of the assessee and against the revenue without any order as to costs. |
| Summary |
In the landmark case of Commissioner of Income Tax v. K.K. Dhanda (HUF), the Punjab and Haryana High Court examined the provisions of the Income-tax Act, specifically section 23(2). This case revolves around the crucial question of whether losses from self-occupied house properties can be set off against income from other sources. The court's interpretation of the Income-tax Act clarified that the second proviso to section 23(1) does not apply when computing the annual value of residential units. This ruling is significant for taxpayers as it affirms their right to offset losses from self-occupied properties, enhancing the understanding of income tax regulations and property valuation. This case sets a precedent for future tax assessments and is essential for tax professionals and legal practitioners specializing in tax law. The decision underscores the importance of accurate interpretation of tax laws and has implications for taxpayers seeking to manage their tax liabilities effectively. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
GOKAL CHAND MITAL,
S.S. SODHI
|
| Lawyers |
Ashok Bhan,
Ajay Mittal,
Bhagirath Dass,
Ramesh Kumar
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
K.K. Dhanda (HUF)
|
| Citations |
1989 SLD 2523,
(1989) 178 ITR 602
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
23(2)
|