TMI Blog1969 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years are 1957-58, 1958-59 and 1959-60. Her legal representative, Madhav Prasad Jatia, has been brought on the record. The assessee owned at Delhi a building known as Grand Hotel. She experienced much difficulty in collecting rent from her tenant, who occupied Grand 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y amount equal to the irrecoverable rent of the Grand Hotel property for one year which has not been so excluded in the preceeding assessment ? " It is a little difficult to understand the scope of the question referred to the court. In paragraph 6 of the statement of the case 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted to the assessee for the assessment year 1956-57. Dr. Misra, appearing for the applicant, relied upon the following words appearing in the opening part of item No. 38 of the notification: " as is equal to the amount of rent payable for a year .............." Dr. Misra contended that 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 po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available for successive years. It was observed in Daljit Singh's case that there is no provision in the notification for carrying forward losses to subsequent years. It may, however, be pointed out that the very provision that unrealised rent during one year may be allowed for at the time of assessment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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