NIKETAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) A consolidated statement of case for the asst. year 1973 74, 1974 75 and 1975 76 has been submitted to this Court by the Tribunal, Ahmedabad Bench 'B'. The following question of law arising out of its composite order for the three assessment years in ITA Nos. 1967, 1946 and 1647 (Ahd)/1979 has been referred to this Court for its decision :

(2.) AS the question suggests, it relates to claim of the assessee to deduct arrears in respect of amount received by it from the two occupiers of its properties, namely, M/s Dadaji Dhagji & Co. and M/s De Smet India (P) Ltd. relating to earlier period of these assessment years.

(3.) THE facts necessary for the present purposes relating to the claim of deduction regarding unrealised rent/licence fee from M/s De Smet India (P) Ltd. while computing income under the head 'Income from house property' may be noticed. For asst. year 1973 74, the assessee has claimed a deduction of Rs. 75,504 in respect of unrealised rent. For asst. year 1974 75, the claim for deduction on account of irrecoverable rent from the said occupant was Rs. 1,88,716 and for the asst. year 1975 76 the claim was for a sum of Rs. 3,02,060 which included the arrears of rent for the asst. yrs. 1973 74 and 1974 75 and had not been allowed as deduction in those years. The claim was to deduct such arrears from the income under the head "Income from house property" in terms of S. 24(1)(x) of the IT Act, 1961 which reads "Income chargeable under the head "Income from house property" shall, subject to the provisions of sub s. (2), be computed after making the following deductions, namely :