Rent enhancement of properties attached u/s 226(3)

[Himanshu Narayan]

The Income Tax authorities, Patna have applied before the Rent Controller cum Sub Divisional Magistrate, Sadar, Patna for effecting enhancement in the rental structure at the prevailing current rent for premises that were attached under 226(3) of IT Act.

Please inform if IT can apply for rent fixation at the current rates for properties attached u/s 226(3) whose long term tenancy is still continuing.

In this matter no notice etc. has been given by the IT to tenants whose rentals are attached u/s 226(3) and what they have received is a Notice from the Rent Controller Office, Patna Sadar, Patna.

[Guest]

I personally do not feel that property can be attached u/s 226(3) rather this section authorises AO/TRO to direct any person in writing from whom money is due or may become due to the assesse upto an amount which an assesse is liable to pay. This section does not authorise AO to ask for something which is not due to the assesse. To my mind, he cannot ask for revision of rent, if not originally agreed by such person.

AI Summary

Income Tax Authorities Seek Rent Hike for Attached Properties Under Section 226(3); Tenants Challenge Legitimacy of Demand The Income Tax authorities in Patna have requested the Rent Controller to enhance the rent for properties attached under Section 226(3) of the Income Tax Act. These properties are under long-term tenancy, and tenants have received notices from the Rent Controller, not directly from the Income Tax authorities. A respondent, identified as a Chartered Accountant, argues that Section 226(3) does not permit the authorities to demand rent revisions since it only allows them to direct payments due to the assessee. The section does not authorize demands for rent increases not originally agreed upon.