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TMI Blog2007 (2) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to Rs. 2,60,000 relating to the period 1992 to 1995 received during the previous year relevant to the assessment year 1996-97 constituted income from other sources, if not income from property. 3. The learned Commissioner ought to have seen that the Jt. Commissioner of Income-tax while making the assessment had treated the arrears of rent as income from house property giving the statutory deductions. The Commissioner of Income-tax (Appeals) had no justification to treat the income from property as income from other sources. 4. The learned Commissioner of Income-tax (Appeals) as well as the Assessing Officer ought to have seen that being arrears of rent, this is not assessable under property or as income from other sources. The i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e short controversy is regarding the assessability of the arrears of rent received by the assessee in the previous year relevant to the assessment year 1996-97. The argument of the ld. Chartered Accountant for the assessee is that section 25B of the Act is brought on the statute book with effect from the assessment year 2001-02 and it has no retrospective effect to bring to tax the arrears prior to the introduction of the said section as it is not retrospective in operation. We find substance in the argument of the ld. Chartered Accountant. Section 25B which was brought on the statute book reads as under :- "25B. Where the assessee- (a)is the owner of any property consisting of any buildings or lands appurtenant thereto which has been let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal's order postulates. The answer would be in the negative. Rent, whether current or in arrears, is the yield of the house property and the source of the income being the letting of a house property by the owner, the rent shall continue to have its character as "income from house property". 8. In the case of Ms. Sadhna Chadha (supra), the Hon'ble Delhi High Court has held as under:- "Clause (a) of the sub-section lays down that the annual value is the sum for which the property may reasonably be expected to be let from year to year. Clause (b) takes care of the situation where the annual rent of the property let out is in excess of the sum for which it may reasonably be expected to be let from year to year. Obviously, clause (b) cove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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