TaxTMI 
TaxTMI 
1994 (12) TMI 326
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.... 31, 1993, the petitioner received arrear of rent. Whether the arrears of rent received thus will be subject to tax under section 23 of the Income-tax Act." The application was defective in several respects and ultimately a proper application duly signed by the applicant was filed only on November 10, 1994. The fuller facts have been elicited from counsel for the applicant who appeared before the authority at the time of hearing. They may now be stated. The applicant is residing and carrying on business at Glasgow. He has been assessee as non-resident under the Income-tax Act for the assessment years 1988-89 to 1994-95, his main source of income being one-sixth share in a house property at Jalandhar. It is understood that six persons hav....
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....x deducted at source". For the assessment year 1993-94, the applicant filed a return of income. He showed therein Rs. 29,756 as his share of the rental income from the property based on the rents payable and paid for the period April 1, 1992, to March 31, 1993. The amount of Rs. 1,05,083 was also shown as income with a remark : "Arrears of rent received from tenant exempt under section 22". The tax on Rs. 1,34,839 came to Rs. 24,711 but as Rs. 40,452 had been deducted at source, the applicant claimed a refund of at paid in excess. This return has been processed under section 143(1) of the Income-tax Act, 1961, for the assessment year 1993-94 and the refund claimed by the applicant granted to him. The question, therefore, on which the auth....
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.... the previous year, the actual rent received or receivable by the owner in respect of such year. It is, therefore, clear that the income from property computed under section 23 cannot exceed the actual rent derived in respect of the property for the previous year in question. In the present case, there application has returned and been assessee on the increased rent received by him for the financial year 1992-93. This is no longer in issue. The matter in dispute is only in regard to the sum received by him by way of arrears of rent for the period up to March 31, 1992. The Act clearly does not provide for the assessment of the excess received in respect of earlier years as income from house property for the assessment year 1993-94. That the ....
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.... the question. This contention, apart from being purely technical, is without merit because under section 23, after amendment, the income from house property can be assessee on accrual or receipt basis. Hence, if the arrears are assessable at all as income under section 23, they could be brought to tax in the year of receipt, namely, the financial year 1992-93 relevant to the assessment year 1993-94. This objection, therefore, cannot be sustained. A question might arise as to whether the assessee's act of filing the return including the amount of arrears in his return will preclude him from approaching the authority for a ruling. It is clear it does not. In the first place, there is no pending dispute between the applicant and the Inco....