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2013 (4) TMI 138 - HC - Income TaxArrears of rent - Escaped Assessement U/s 147 & 148 - The assessee had received arrears of rent pertaining to the years under consideration after the assessee filed returns declaring income received during the said assessment years originally - Held that:- During regular assessment under Section 139 the aforesaid amount could not be brought into tax network prior to insertion of Section 25B. Now it has become possible to take into consideration of the arrears of rent irrespective of the years of receipt under the heading of income from house property within the meaning of Section 22. Since it relates to the period prior to insertion of Section 25B the said income can be brought under Sections 147 and 148. There is no clear decision or indication in the judgment of Delhi High Court that Section 25B of the Act has been declared to be clarificatory in nature. Mr. Khaitan, learned Senior Counsel seems to be right that no ratio has been laid down in that judgment. But ultimately the Court held that arrears of rent is taxable by virtue of the provision of Section 5(1)(a) of the Income Tax Act, 1961. In view of the discussion as above, we are unable to accept the contention of Mr. Khaitan. If his contention is accepted then the aforesaid income which is not otherwise permitted to be escaped by the Act has to be exempted from income tax. Neither the Hamilton case [(1992) 194 ITR 391] nor Hope (India) [1999 (4) TMI 72 - CALCUTTA HIGH COURT] case has dealt with the aforesaid aspect of the matter. Even the Full Bench decision rendered in case of P.G. and Sawoo Private Ltd. v. Assistant Commissioner of Income Tax [2008 (9) TMI 92 - CALCUTTA HIGH COURT] did not deal with this aspect rather this Full Bench decision has merely explained that there was no conflict between the judgment of this Hon’ble Court in Hamilton case and Hope (India) case. - Decided against the assessee.
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