9911796707
TMI Blog1983 (8) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... was tenanted and it appears from the materials placed before us that the rent remained unpaid. The assessee therefore claimed her portion of the rental income as irrecoverable rent while computing the annual letting value of the property. This claim of hers was rejected up to the stage of the Tribunal, for the assessment year 1975-76. The assessee once again claimed deduction of the amount on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the benefit. He further pointed out that merely because one of the conditions in rule 4 of the Income-tax Rules, 1962, mentions institution of legal proceedings, it is not enough for claiming a deduction. On the other hand, the learned counsel for the assessee, Shri Vinod Chandiok, argued that the assessee complied with all the conditions mentioned in rule 4 including the condition regarding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reads as follows : " 4. Under clause (x) of sub-section (1) of section 24, deduction shall be allowed of such part of income in respect of which tax is payable under the head 'Income from house property' as is equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where-- (a) the tenancy is bona fide ; (b) the defaulting tenant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Undoubtedly, the assessee complied with the cumulative conditions (a) to (e) but that would not be sufficient to allow an assessee a deduction unless there can be a finding that the assessee cannot realise the rent. It is only on this basic condition that one has to go to the various other subsidiary conditions mentioned in rule 4. All that we get from the record is that the assessee filed a suit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e some sort of rules of evidence or guidelines for the purpose of recording the basic and essential finding that the rent is lost or that it is irrecoverable. 4. In view of the above, the assessee cannot get the benefit of deduction and the AAC erred in directing the deduction claimed by the assessee. The order of the AAC is reversed and that of the ITO restored. 5. In the result, the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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