Property income need not always be computed by financial year, as the Act shows no mandatory rule to that effect.

Income assessable under the head "Income from property" is not invariably required to be computed with reference to the financial year. The Bombay HC noted that sections 3, 22 and 23 of the Income-tax Act, 1961 did not indicate any such mandatory basis, and no rule or supporting authority was shown to impose it. On that reasoning, the question was answered in the negative and the assessee's view was accepted.

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Issues: Whether income assessable under the head "Income from property" is required to be computed invariably with reference to the financial year.

Analysis: The reference arose under section 256(1) of the Income-tax Act, 1961. The relevant provisions of sections 3, 22 and 23 did not indicate that income from property must always be computed on the basis of the financial year. No rule was shown to impose such a requirement, and no authority supporting that view was cited.

Conclusion: Income assessable under the head "Income from property" is not invariably required to be computed with reference to the financial year. The question was answered in the negative, in favour of the assessee.

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