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2015 (12) TMI 565 - HC - Income TaxTaxability of unrealized rent - taxable on accrual basis or receipt basis - Applicability of Section 25AA in respect of only that rent which was unrealisable due to the circumstances of Rule 4 read with explanation to Section 23(1) of the I.T. Act - Held that:- the unrealized rent cannot be taken to be taxable in the hands of the assessee under the head "income from house property" when it is not realizable. From a perusal of the orders passed by the Assessing Officer, the CIT(A) and the Tribunal, we notice that no aid was taken by the Assessing Officer either in his order or before the CIT(A) or the Tribunal from the said rule. However, no argument was raised based on Rule 4 of the Rules and, therefore, no reference was made by the Tribunal to Rule 4 of the Rules. Moreover, the revenue could not refer to any material on record to show that the assessee was ever confronted to establish the requirements of Rule 4 of the Rules to claim benefit of unrealized rent. Accordingly, the substantial question of law claimed on that basis does not arise. Adverting to the judgments in D.C. Anand and sons and D.M. Vakil's cases (1945 (9) TMI 1 - BOMBAY HIGH COURT ) relied upon by the learned counsel for the appellant-revenue, it may be noticed that the principle of law enunciated therein, is well recognized, however, in view of the findings noticed hereinbefore, no benefit can be derived by the revenue from the aforesaid pronouncements. - Decided against revenue
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