Ground rent deduction under income from property is limited to the relevant previous year; earlier arrears are not deductible later.

Ground rent under section 9(1)(iv) is deductible only to the extent it relates to the relevant previous year in computing income from property. The allowance is tied to annual income computation, so arrears for earlier periods do not become deductible merely because they were demanded, quantified, or paid in the assessment year. Actual payment is not the governing test; the decisive factor is whether the charge pertains to that year. A return form or rule cannot expand the statutory deduction beyond the plain language of the Act.

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Issues: Whether arrears of ground rent relating to prior years, though demanded and quantified during the previous year, were deductible under section 9(1)(iv) in computing income from property for the assessment year in question.

Analysis: The allowance under section 9 is part of the annual computation of income from property and is tied to the previous year. Although the provision does not require actual payment for ground rent, the quantum deductible must correspond to the ground rent attributable to that previous year. Arrears relating to earlier periods do not become deductible merely because they were demanded or paid in the assessment year. A return form or rule framed under the Act cannot enlarge the statutory deduction or alter the plain meaning of the section.

Conclusion: The assessee was not entitled to deduct the arrears of ground rent relating to the prior 75 months; only the ground rent for the previous year was allowable. The question was answered against the assessee and in favour of the Revenue.

Ratio Decidendi: Under section 9(1)(iv) of the Indian Income-tax Act, 1922, ground rent is deductible only to the extent it pertains to the relevant previous year, and arrears of earlier years cannot be claimed in a later assessment year merely because they are quantified or paid then.

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