Law:

Section:

Section 24(1)(ix) of the income-tax act, 1961-Income from house property-Deductions-Assessment years 1970-71 and 1971-72-Whether in order to attract section 24(1)(ix), all that is necessary is that property in question should have been let out and also remained vacant during part of same year and vacancy allowance can be claimed whether letting preceded or followed vacancy-held, yes-whether merly because one independent floor of building, which is a seperate house property, is vacant during a part of the year & the other floors remain vacant throughout the year, second limb of clause (ix ) of section 24(1) would not be attracted-held, yes. Words and phrases-The phrase 'where the property is let and was vacant during a part of the year' occurring in section 24(l)(ix ) of the income-tax act, 1961. Facts The assessee constructed a four-storeyed building, which was completed on 30-12-1968. On 12-10-1969, the ground floor and the first floor were let out. For the assessment years 1970-71 and 1971-72, the assessee claimed vacancy remission in terms of section 24(1)( ix), in respect of the two floors let out on 12-10-1969 for the period from 1-4-1969 to 11-10-1969. In respect of the other two floors, which were not let out in the relevant accounting years, the assessee claimed vacancy remission for the entire period from 1-4-1969 to 31-3-1971. The ITO, however, held that insofar as the vacancy of the ground floor and the first floor preceded the date of letting out of these two floors and also insofar as the other two floors had not been let out at all in the relevant accounting years, the vacancy benefit in terms of section 24(1)(ix) was not available at all. On appeal, the AAC and the Tribunal, however, allowed the assessee's claim. On reference, the revenue contended that the Explanation to section 24(1)(ix) , as inserted with effect from 1-4-1977, was not intended to be retrospective. The assessee, on the other hand, submitted that the said Explanation applied in terms to the instant case, because it was clarificatory of the law as embodied in clause (ix) and the Explanation was inserted as ex abundanti cautela. Held In order that the first part of clause (ix)…

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