9911796707
TMI Blog2003 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... the annual value of the property for the purposes of section 22 of the Act. - The above being the position, no fault can be found with the view taken by the appellate authorities below. Thus, the order of the Tribunal does not give rise to a question of law, much less a substantial question of law, to fall within the limited purview of section 260A – Revenue’s appeal dismissed - - - - - Dated:- 8-12-2003 - Judge(s) : D. K. JAIN., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by D.K. JAIN J. - This appeal by the Revenue under section 260A of the Income-tax Act, 1961 (for short "the Act") is directed against the order, dated February 25, 2003, passed by the Income-tax Appellate Tribunal, Delhi Bench-A, Delhi (for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of five months falling in the relevant previous year, amounting to Rs. 2,18,790 and offered the same as rental income for the said assessment year. It was claimed by the assessee that the difference of Rs. 4,07,786, being the balance amount of arrears of rent relatable to the earlier years, was not to be assessed in the assessment year 1996-97. While issuing the intimation under section 143(1)(a) of the Act, the Assessing Officer rejected the claim of the assessee and brought the entire amount of arrears of rent received during the previous year, relevant to the assessment year 1996-97, as the income for the said assessment year. Aggrieved, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). The said action ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded in the total income for the assessment year 1996-97. It was also urged that in view of the provisions of section 5 of the Act, providing for inclusion of all the income derived from whatever source, received or deemed to be received in the relevant year, the entire amount received by the assessee towards rent had to be included in the total income of the previous year in which it had actually been received. Thus, the short question for consideration is as to whether the arrears of rent relating to the earlier year(s) could be brought to tax as income from house property of the previous year in which these are actually received. In our view, having regard to the clear language of sections 22 and 23 of the Act, the answer to the ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ths bears to such period:" 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) covers a case where the rent for the year, actually received by the owner of the property, is in excess of the fair rent, like some fancy rent, which a tenant may pay to the owner by way of an extra consideration for some special reason. It only provides that the actual "annual rent", which is received or receivable by the owner, even though it may be in excess of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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