TMI Blog1972 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order was challenged before the Assistant Commissioner of Agricultural Income-tax and later before the Agricultural Income-tax Appellate Tribunal but without success - even accepting the contention of the assessee that the date of accrual of the rents has been wrongly taken by the assessing authority, we cannot set aside the asssssment as such - tax revision cases are dismissed - - - - - Dated:- 14-4-1972 - Judge(s) : G. RAMANUJAM., V. RAMASWAMY. JUDGMENT The judgment of the court was delivered by RAMANUJAM J.- As all the three tax cases are connected and arise out of a common order of the Agricultural Income-tax Tribunal, they are dealt with together. As the facts and the points involved in all the cases are the same it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide. The Tribunal took the view that as per the terms of the lease deed the rent is payable on or before June 30, 1962, that this clause would not necessarily mean that the rent is payable only on 30th June, 1962, that the words "on or before 30th day of June of each year" would mean any one of the several days falling within the whole year ending with 30th June of that year, and that the assessing officer was, therefore, justified in proceeding on the basis that the rent had accrued on a day prior to first April of each lease year. The Tribunal also gave an alternative reason for rejecting the assessee's contention. It held that even assuming that the rent accrued only on the specified date, i.e., 30th June, of each year, the assessee cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the accounting year in question. Even on the accrual basis which is the one adopted by the assessing authority, the rent due for the lease year ending 30th June, 1961, would accrue only on that date and not before, and the Tribunal's reasoning that the words "on or before 30th June of every year" are capable of being construed as any one day within that year is not possible of acceptance. In Dagger v. Shepherd it is stated : "The use of the phrase 'on or before' some fixed date is today by no means uncommon, particularly in covenants or demands for payment of money, and in such a context it cannot, in our judgment, be open to serious doubt that it means, and would be understood to mean, that the covenantor or debtor is under obligation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o account and assessed in the assessment year 1961-62 and, therefore, it cannot be brought to tax over again for the assessment year 1962-63. Even accepting the assessee's statement that there has been an assessment of the rents accrued on 30th June, 1961, in the assessment year 1961-62, that can only be taken to be erroneous and that cannot justify the cancellation of the assessment order as such for the assessment year 1962-63, for such cancellation will mean that the rents did not accrue at all during the assessment year 1962-63, which is not the case. According to the terms of the lease deed, there will be an accrual of rent on 30th June of each year and on the accrual basis the assessee is liable to pay for the assessment year 1962-63, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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