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Section 23 of the Income-tax Act, 1961 - Income from house property - Annual value - Whether benefit of section 23(2) is available to a HUF - Held, yes [In favour of assessee] FACTS The assessee was a Hindu Undivided Family. It derived income from house property. The claim of assessee for deduction under section 23(2) was rejected by the Assessing Officer. In further appeal, the Commissioner (Appeals) also rejected the claim of the assessee. According to Commissioner (Appeals), the benefits envisaged by section 23(2) were available only to an individual and not to HUF. For this proposition, the Commissioner (Appeals) relied upon the decision of J&K High Court in the case of CIT v. Mohd. Amin Tyamboo [1980] 125 ITR 375. However, in further appeal, the Tribunal relied upon the decision of Income tax Appellate Tribunal, Delhi Bench (SMC) in the case of ITO v. Tarlock Singh & Sons [1989] 29 ITD 139 and held that the benefit given under section 23(2) would be available to HUF. On revenue's appeal: HELD The provisions of section 23(2) makes it clear that the benefits of the relief in respect of self-occupied property is available only to the owner who can reside in his own residence, that means, the benefit of relief is available to self-occupied property only to an individual assessee and not to an imaginary assessable entity. [Para 6] The same very provision of section 23(2), while fell for consideration before Delhi High Court in CIT v. Dewan Chand Dholan Dass [1981] 132 ITR 790 /[1982] 9 Taxman 172 , the Division Bench observed that the expression, 'occupation of the owner for the purposes of his own residence' in section 23(2) refers only to a human owner and not a fictional entity. A firm cannot physically reside and so cannot claim the benefit of the provision which is available to an assessable entity only. It is difficult to contemplate residence by some of the partners or even all of them as self-residence by the owner-firm in the context of section 23(2), the dichotomy between the firm and its partners, who are independent assessable entities for the purposes of the Act, should be given effect to. The nature of the relief under section 23(2) is…

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