2007 (1) TMI 99

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....ng ITA Nos. 1184/06, 1185/06, 1186/06 and 1191/06 filed by the Appellant are disposed of, as all these appeals have common ground. 2. These appeals arise out of a decision dated 24th February, 2006 passed by learned Income Tax Appellate Tribunal. 3. Appellant is the owner of the premises bearing Municipal No. 50/1, Ist Floor, Janpath, New Delhi which have been let out. The rent of this premi....

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....ed in terms of arrears of rent was not rent at all. It was only damages and mesne profits which cannot be taxed being in the nature of capital receipt. Further, the arrears of rent cannot be taxed as it was received after the end of the financial year relevant to the assessment year and the appellant has relied upon a decision of our own High Court in the case of Commissioner of Income Tax Vs. Ms ....

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....the Income Tax Act did not apply to the assessment year under consideration and the provision being prospective in nature it could not apply to any earlier assessment year. 7. On the other hand, it has been argued by learned counsel for the respondent that the income becomes taxable on the footing of accrual only after the right of tax payer to the income accrues or arises, and in the case of a....

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....py of order dated 23.8.99 passed by learned Additional District Judge, Delhi in the suit filed by him against his tenant as well as application under Order 23 Rule 1 C.P.C. According to it, it was agreed that the tenant shall pay rent as well as arrears of rent to the appellant. So, this plea of the appellant that it was damages and mesne profit and not `rent' is thus unfounded. 9. Since, th....