| Case ID |
5cad4453-b90a-45b1-bade-0f5db4faa2ec |
| Body |
View case body. Login to View |
| Case Number |
IT REFERENCE NO. 63 OF 1990 |
| Decision Date |
Oct 01, 1991 |
| Hearing Date |
|
| Decision |
The court held that income from house property, including arrears of rent from previous years, should be classified under 'Income from house property' rather than as 'Income from other sources'. The court emphasized that any arrears of rent received in a later year must be assessed in the context of the previous years they pertain to, affirming that they retain their original character as income from house property. The ruling clarified that such income cannot be taxed under the head 'Income from other sources' and must be computed as income from house property of the respective earlier years. |
| Summary |
In the landmark case of Hamilton & Co. (P.) Ltd vs. Commissioner of Income Tax, the Calcutta High Court examined critical issues related to the taxation of arrears of rent under the Income Tax Act of 1961. The court ruled that arrears of rent, even when received in a subsequent assessment year, should be classified as income from house property pertaining to the years they relate to. This case highlights the importance of understanding the nuances of tax law, particularly sections 22 and 23 of the Income Tax Act, which govern the taxation of income from house property. The decision underscores the principle that all forms of rental income, regardless of the year of receipt, must be accurately accounted for in terms of their original classification. This case is significant for property owners and tax professionals, as it clarifies tax obligations regarding rental income and ensures that income from house property is not misclassified under different heads, which could lead to improper taxation. The ruling provides a clear precedent for future cases involving similar issues and reinforces the integrity of tax law by ensuring that income is taxed according to its nature rather than the timing of its receipt. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
Ajit K. Sengupta,
Shyamal Kumar Sen
|
| Lawyers |
Chopra
|
| Petitioners |
Hamilton & Co. (P.) Ltd
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1993 SLD 395,
(1993) 67 TAX 162,
(1992) 194 ITR 391
|
| Other Citations |
Amolak Ram Khosla v. CIT [1981] 131 ITR 589 (SC),
CIT v. B.C. Srinivasa Setty [1981] 128 ITR 294 (SC),
Dewan Daulat Rai Kapoor v. New Delhi Municipal Committee [1980] 122 ITR 700 (SC),
Nalini Kant Ambalal Mody v. S.A.L. Narayan Row, CIT [1966] 61 ITR 428 (SC),
Mrs. Sheila Kaushish v. CIT [1981] 131 ITR 435 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
256(1),
22,
23
|