Law:

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Section 5, read with section 25B, of the Income-tax Act, 1961 - Income - Accrual of - Assessment year 2000-01 - Assessee was owner of premises which had been let out - Assessee received a sum during financial year 1999-2000 on account of arrears of rent for period from 1-4-1994 to 31-3-1999 and did not offer rental income in year relevant to assessment year of receipt nor offered same in relevant assessment year - Assessee's case was that he received arrears of rent during financial year 1999-2000 which, in fact, were damages and mesne profits received by him in compromise settlement arrived in suit filed by assessee against tenant for vacating premises and could not be brought to tax under head 'Income from house property' - Whether by virtue of agreement between parties, assessee not only acquired right to additional income, but, in fact, received arrears of rent during financial year 1999-2000 and it would attract provision of section 5(1)(a) - Held, yes Section 25B of the Income-tax Act, 1961 - Income from house property - Arrear of rent received - Whether section 25B inserted by Finance Act, 2000, is more clarificatory in nature and it only clarifies position that if any arrears of rent are received in a subsequent year, same will be taxed in year of receipt - Held, yes CASES REFERRED TO CIT v. Ms. Sadhna Chadha [2004] 270 ITR 534/ 135 Taxman 242 (Delhi) [Para 4] and Hamilton & Co. (P.) Ltd. v. CIT[1992] 194 ITR 391 (Cal.) [Para 4]. JUDGMENT V.B. Gupta, J. - By this Common , four appeals being 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 24-2-2006 passed by learned Income-tax Appellate Tribunal. 3. Appellant is the owner of the premises bearing Municipal No. 50/1, 1st Floor, Janpath, New Delhi which have been let out. The rent of this premises was increased retrospectively with effect from 1-4-1994 by way of an agreement and as a result thereof, the appellant received a sum of Rs. 38,55,827.40 during the financial year 1999-2000 on account of arrears of rent for the period 1-4-1994 to 31-3-1999. The appellant did not offer…

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