9911796707
TMI Blog1969 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... Hotel. At the time of the assessment for 1956-57, the assessee was able to secure deduction under item No. 38 of the Government Notification No. 873-F dated March 21, 1922, as regards unrealised rent in previous years. The assessee made similar claims for deduction under item No. 38 of the Government Notification No. 878-F dated March 21, 1922, at the time of assessment for the years 1957-58, 1958-59 and 1959-60. The claim was not specifically made before the Income-tax Officer. A claim was made in appeal before the Appellate Assistant Commissioner. He declined to recognise the claim made at such a late stage. When the matter went before the Tribunal in further appeal, the Tribunal permitted the assessee to raise the point before it. On me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Tribunal observed that all the conditions necessary for invoking the exemption have been satisfied. If all the conditions for invoking the exemption are satisfied, it would appear that a case for exemption has been made out. Yet, the Tribunal has referred to this court the question whether the assessee is entitled to the exemption claimed by her. We take it that the question is whether, on the facts found by the Tribunal, the assessee is entitled to the benefit of item No. 38 of the Government notification. The Government notification dated March 21, 1922, runs thus: " The following classes of income shall be exempt from the tax payable under the said Act ...... (38) Such part of the income in respect of which the said tax is payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the exemption permissible under item No. 38 of the Government notification is-available for one assessment year only. It will be convenient to refer to the corresponding provision under the Income-tax Act, 1961. Section 24 of the Income-tax Act, 1961, deals with deductions from income from house property. Sub-section (1) of section 24 of the 1961 Act states : " Income chargeable under the head ' Income from house property ' shall, subject to the porovisions of sub-section (1), be computed after making the following deductions, namely:..... (X) subject to such rules as may be made in this behalf, the amount in respect of rent from property let to a tenant which the assessee cannot realise." Rule 4 of the Income-tax Rules, 1962, provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment for subsequent year is itself in the nature of carrying forward loss from one year to a subsequent year. The basis of item No. 38 of the Government notification dated March 21, 1922, was that it is unfair to assess tax on the assumed income of property in spite of the fact that the landlord failed to collect rent from the tenant. If such allowance can be made for one assessment year we see no good reason why such allowance may not be made in favour of the landlord assessee for subsequent years. It is true that deduction for any assessment year cannot exceed rent for one year. But, if it is found that duration of unrealised rent exceeds a period of one year, there is no good reason why similar claim by the landlord should not be mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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