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Section 24 of the Income-tax Act, 1961 - Income from house property - Deductions from - Assessment years 1971-72 to 1973-74 and 1976-77 - As per terms of deed of lease, it was responsibility of lessee to keep premises under proper repairs and in good condition and to bear cost of all seasonal repairs during continuance of tenancy - Whether, on facts, assessee-company, which let out aforesaid premises, was entitled to deduction in respect of repairs from rental income - Held, no FACTS The assessee-company let out the premises in question to a firm on rent and as per the terms of the deed of lease, it was the responsibility of the lessee to keep the premises under proper repairs and in good condition and to bear the cost of all seasonal repairs during the continuance of tenancy. For the assessment years 1971-72 to 1973-74 and 1976-77, the assessee claimed deduction under section 24(1)(i) in respect of repairs from the rental income of the aforesaid premises. The ITO initially allowed the deduction. However, the Commissioner invoked the provisions of section 263 and directed the ITO to make fresh assessment. Thereafter the ITO disallowed the assessee's claim. On appeal the AAC allowed the assessee's claim. On appeal by the revenue, the Tribunal held that the action of the Commissioner under section 263 was not justified. On reference: HELD In the instant case, there was no question of any clarification by the letters from the lessee to the ITO when the deed of lease itself clearly and in quite unambiguous terms, spoke of the liability of the lessee as to the repairs of the demised premises. In view of these facts and circumstances, there was no question of any deduction to be allowed to the assessee under section 24 and the Tribunal was clearly wrong in setting aside the order passed by the Commissioner. CASE REFERRED TO CIT v. Raipur Flour Mills (P.) Ltd. [1984] 145 ITR 205 (MP). B.K. Rawat for the Applicant. JUDGMENT Sen, J. - The Tribunal has referred the following question to this Court under section 256(1) of the Income-tax Act, 1961 ('the Act'), for its opinion for the assessment year 1977-78 (sic) : "Whether, on the facts and in the circumstances of the…

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