JUDGMENT
Satish Chandra, C.J. – For the assessment year 1970-71, the assessee claimed deduction of a sum of Rs. 1,800/-under S. 23(2) of the Act as a deduction from out of his share income from properties. The Income Tax Officer, however, allowed deduction to the extent of 51.5% of Rs. 1,800/-.
2. On appeal, the Appellate Assistant Commissioner confirmed this view. The Assessee went up to the Tribunal. The Tribunal held that S. 23(2) applied in respect of each assessee separately. The total income of each co-owner is likely to be different in the case of different co-owners. Each co-owner is entitled to the benefit of S. 23(2) of the Act. On this view, the appeal was allowed.
3. At the instance of the Commissioner, the Tribunal has referred for our opinion the following question of law :-
“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee and his two co-owners were separately entitled to the benefit of the statutory deduction of Rs. 1,800/- under S. 23(2) of the Income Tax Act, 1961 ?
4. In Commissioner of Income Tax vs. Hari Shanker Bagla this Court held that each co-owner is entitled to the benefit of S. 23(2) separately. In accordance with this decision, the question referred to us is answered in the affirmative in favour of the assessee and against the department. The assessee will be entitled to costs which are assessed at Rs. 200/-.