9911796707
TMI Blog1991 (2) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, 1961, on account of unrealised rent subject to the condition that the loss so determined shall be restricted to the amount of loss claimed by the assessee? " Shortly stated, the facts are that the assessee-company in the three years under reference was the owner of house property at 31, Shakespeare Sarani, Calcutta. Gross rental income from the said property was returned at nil as the Soviet Consulate occupying the property did not pay any rent to the assessee. The original lease also stood expired on January 14, 1981. The Income-tax Officer did not accept the above contention of the assessee and estimated the annual letting value of the property at Rs. 96,000 for assessment under the head "House property income" in the three yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per year. The Tribunal, accordingly, directed that loss under the head " Income from house property " be recomputed after allowing deduction of Rs. 96,000 as unrealised rent from the income from house property in each of these assessment years subject to the condition that the loss so determined should be restricted to the amount of loss claimed by the assessee. The only question which calls for determination is whether the Tribunal is right in holding that the conditions prescribed in section 24(1)(x) were satisfied. Section 24(l)(x) provides as follows: "24. (1) Income chargeable under the head 'Income from house property' shall, subject to the provisions of sub-section (2), be computed after making the following deductions, namely :. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal proceeded on the footing that, after expiry of the lease, the assessee had not received any rent and the application made by the assessee under section 86 of the Civil Procedure Code to institute a suit against the Soviet Consulate did not succeed as the Government did not accord any sanction. On these facts, the Tribunal came to the finding that the assessable rent was proved to be lost and irrecoverable. In our view, the Tribunal fell into error in holding that the conditions for deduction under section 24(1)(x) were fulfilled. It is true that the assessee had moved the High Court twice to compel the Government of India to consider its application made under section 86 of the Civil Procedure Code to institute a suit against t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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