COMMISSIONER OF INCOME TAX Vs. INDRA CO LTD

JUDGEMENT

(1.) This appeal was filed challenging the order of the Income-tax Appellate Tribunal, whereby the appeal preferred by the Revenue was dismissed.

(2.) The facts relevant for the present purpose are that the assessee-company being the owner of the first floor of an old building in premises No. 14, N. S. Road, Kolkata, measuring 12,000 square feet approximately, let out 4,787 square feet therefrom to M/s. Bangur Brothers Limited at a monthly rent of Rs. 075 per square foot long back. Bangur Brothers had been granted the right to sublet the said "office space to others and had actually sublet the same to M/s. Bengal Papers Mills Limited long time back. After Bangur Brothers surrendered its tenancy right, the assessee entered into a formal agreement of tenancy with Times Construction on April 17, 1987, in respect of the said office space and on May 12, 1987, Times Construction entered into an agreement with the State Bank of Bikaner and Jaipur for subletting the said office space to the said bank at a monthly rent of Rs. 14 per square foot along with another amount of Rs. 6.35 per square foot towards service charges and maintenance charges. In the process, the assessee-company started receiving rent from the Times Construction at the rate of Rs. 1,14,888 per annum only whereas Times Construction went on receiving rent from its sub-tenant, the bank, at the rate of Rs. 11,68,985 per annum.

(3.) The Assessing Officer while assessing the income of the assessee-company for the assessment year 1992-93, made computation of income of the assessee from the house property at the rate of Rs. 11,68,985 instead of Rs. 1,14,888 as claimed by the assessee.