2011 (1) TMI 889 - DELHI HIGH COURT - Income Tax

Head Note / Extract:
Taxability - House property - Whether the arrears of rent relating to another previous year are taxable as income from house property of the later previous year in which they were received - As such in the case of B.M. Gupta and Sons (HUF) v. Assistant Commissioner of Income-Tax, (2007 -TMI - 3922 - HIGH COURT DELHI),held that Section 25B of the Act only clarifies the position that if any arrears of rent are received in subsequent year, the same will be taxed in the year of receipt - Therefore, the Tribunal was right in holding that the arrears of rent received in the assessment year 2000-01 could not be spread over the previous years, i.e., 1996-97 to 1999-2000 - Decided in favour of assessee.As regards the issue relates to the maintenance and other charges paid by the assessee while computing the ALV of the property. Since this amount was paid by the assessee, it was rightly held to be deductible from the rent while computing the ALV - On this aspect no question of law arises - These appeals are accordingly dismissed.