Commissioner Of Income-Tax vs Smt. Vimla D. Sonwane And Others on 1 January, 1800
In the case of CIT vs. Vimla D. Sonwane & Ors. 4, the
Assessee, co-owner of a plot, gave on lease one plot at Rs.9 lakhs per
year to M/s. Poonam Hotels Pvt. Ltd. and other plot to M/s. Punjab
Co-operative Housing Society at Rs. 6 lakhs per year. Both the lessees
filed proceedings for fixing of standard rent in the Small Causes Court
at Bombay. The Assessee there did not follow the mercantile system of
accounting but income was offered on receipt basis. The Revenue
sought to add the lease money in the total income of the Assessee on
accrual basis on the basis of agreed rent. The matter reached this Court
and the Court in para 5 observed as under: