9911796707
TMI Blog2007 (12) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... ed assessment year. Since these appeals were heard together, these are being disposed of by this single consolidated order. 2. Facts in brief borne out from the records are that assessee jointly owned the property along with other two co-owners. This property was let out to State Bank of India and the return of income pertaining to the impugned assessment year with respect to 1/4th share of the gross total income was shown at Rs. 1,44,502. However, prior to that, assessee had jointly along with other co-owners have made a claim for the revision of the rent payable to them. Accordingly, the rent was increased and arrears of rent were released by the State Bank of India from the period 1-7-1994 to 31-3-1999 aggregating to Rs. 11,57,884 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has also brought to the notice that the view taken by the CIT(A) pertaining to the assessment year 2000-01 with regard to chargeability of arrears of rent in the year of receipt was also confirmed by the Tribunal vide its order dated 26-9-2006 in ITA Nos. 21 and 22/Mum./2004 holding that arrears of rent can be taxed in the year of receipt, irrespective of the fact whether the assessee is the owner of the property or not after the insertion of section 25B with effect from the assessment year 2001-02. Since the section is prospective, the same cannot be applied to the year under consideration i.e., 2000-01. Therefore, the arrears of rent could not be taxed. The learned counsel for the assessee has invited our attention to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. On careful perusal of the lease agreement executed between the assessee and the State Bank of India, we find that the premises was let out at a fixed rent, but, it would be revised after a period of 5 years. The first agreement was executed in 1974 which was renewed in 1985. Thereafter, it was renewed in 1999. Through this renewal lease deed, the rent was increased to Rs. 17 per sq. feet from 1-7-1994 to 30-6-1999 and further increased by 25 per cent from 1-7-1999. From a careful perusal of this lease agreement, we find that there is no recital of a specific increment in monthly rent. It was done finally in the year 1999 and arrears of rent was also paid to the assessee in the previous year 1999-2000. The arrears of rent could not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. ( supra ) and Hope India (P.) Ltd. s. case ( supra ) would have the effect that enhanced rent received subsequently might not be brought to tax at all prior to the assessment year 2001-02 when the provisions of section 25B became effective. Therefore, the arrears of rent received by the assessee after the expiry of the relevant financial year could not be added to the assessee s income from house property originally assessed. A similar view was also expressed by the Tribunal in the case of K. Vinod Kumar ( supra ). 7. Having viewed the facts of the case in the light of the aforesaid judicial pronouncements we are of the considered opinion that the arrears of rent cannot be assessed even in those years to which it relates. We, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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