1992 (1) TMI 15

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....r, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the lease rent from the properties was to be assessed in the hands of the assessee on receipt basis ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the Income-tax Officer was under no obligation to tax the lease rent on acc....

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.... sources. They included the actual receipts of rent under the head "Income from other sources" in their return of income. The assessees do not maintain regular account books and do not follow the mercantile system of accounting. The Income-tax Officer added the lease money in the total income on accrual basis on the basis of agreed rent. The Appellate Assistant Commissioner maintained the addition....

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....d accrual. Income arising out of the lease of the plots falls in assets under the head "Other sources". Option regarding adoption of system of accounting is with the assessee and not with the Income-tax Department. The assessee is indeed free even to follow different methods of accounting for income from different sources in an appropriate case. The Department cannot compel the assessee to adopt t....