TMI Blog1997 (8) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... the income from business . This order was challenged by the petitioner before the Commissioner (Appeals) who vide his order dated 22-12-1995, while disagreeing with the assessment order passed by respondent No. 1 and allowing the appeal of the petitioner, held that the action of respondent No. 1 in including the aforesaid amount as being arrears of rent and as business income of the petitioner for the assessment year 1992-93, was not in order and, accordingly, the Appellate Commissioner deleted the aforesaid amount from the assessment in the aforesaid assessment year and granted appropriate relief to the petitioner. Even though the revenue has filed an appeal against the order of the Commissioner (Appeals) before the Tribunal and the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of U.S.S.R. in Calcutta. The lease had commenced on 15-1-1958 and was to expire on 15-1-1981. As is noticed, since Dejoo Tea Co. India (P.) Ltd. had purchased the property on 30-11-1977, about 4 years of unexpired term of the lease still remained. On the expiry of the lease period as on 15-1-1981, the lessee refused to vacate the property in question. In view of the protection enjoyed by the lessee under section 86 of the Code of Civil Procedure, 1908, it was not possible for the owner of the property to evict the lessee by filing a suit against it and, accordingly, the owner, i.e., Dejoo Tea Co. (P.) Ltd., filed various petitions before this Court and the Supreme Court contending that section 86 was unconstitutional and ultra vires, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner-company. Because of the aforesaid taking over of the assets and liabilities of Dejoo Tea Co. India (P.) Ltd., the petitioner has now come up in this Court against the impugned notices issued under section 147, read with section 148. The reasons cited by respondent No. 1 in support of the impugned notices are that since the aggregate amount reflected arrears of rent at the rate of ₹ 9 lakhs per month and because the Commissioner (Appeals) refused to agree with respondent No. 1 that the aggregate amount can be assessed as income from business for the assessment year 1992-93, the rent at the rate of ₹ 9 lakh per year being arrears of rent for the past 10 years be assessed as income for the previous year for which the rent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 139 of the Act or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for the assessment for the relevant assessment year. 4. Under section 14 of the Act, all income for the purposes of charging income-tax and computation of total income has been classified under different heads of income and Income from house property , is one of such heads finding mention in clause (c) of section 14. Part (c) of Chapter IV of the Act containing sections 22 and 24 and section 27 deal with the chargeability of the income-tax arising out of income from house property. Annual value of house property has been defined in section 23. The contention of the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h an income which has escaped assessment should be left untaxed? Is there a lacuna in the Act which does not provide for an eventuality, like the present one, where an income admittedly received in the course of an assessment year may be left free from the charge of income-tax, if the interpretation put upon the aforesaid relevant provisions of the Act by the petitioner is accepted. I must say that the learned advocate for the respondents did appear to be at a loss to fully explore the true contours of the interpretation to these relevant sections so as to bring the said income within the purview of chargeability of the tax. The question involved is indeed highly vexed and requires an authoritative pronouncement by a larger Bench, after a m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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