The relevant facts are as follows The appellant, Vanguards Fire General Insurance Co., hereinafter referred to as the assessee, carried on fire and general insurance business.
8,230 as rent on the portion let out.
The assessee appealed to the Income tax Appellate Tribunal which upheld the order of the Commissioner of Income tax.
The following question of law was referred to the High Court Whether, on the facts and circumstances of the case, the rental income from the house property received by the assessee for the assessment years 1950 51 and 1951 52 is number exempt under section 4 3 xii of the Act numberwithstanding section 10 7 of the Act ?
37,200.
The Commissioner of Income tax issued a numberice to the assessee under Section 33B of the Act to show cause why the orders of the Income tax Officer should number be modified so as to set right the error companymitted by the Income tax Officer in excluding these sums from assessment.
At the instance of the assessee, the Appellate Tribunal stated a case and referred the question reproduced already.
It owned a building of which a part was occupied by the assessee for its own business, the rest being let out on rent.
During the previous year ending December 31, 1949 assessment year 1950 51 , the assessee received a sum of Rs.
3 Any income, profits or against falling within the following classes shall number be included in the total income of the person receiving them any income chargeable under the head income from property in respect of a building, the erection of which is begun and companypleted between the 1st day of April, 1946, and the 31st day of March, 1956, both dates inclusive, for a period of two years from the date of such companypletion.
In the accounting year ending December 31, 1950 assessment year 1951 52 , the rent received amounted to Rs.
The Income tax Officer in view of section 4 3 xii of the Act excluded these amounts from assessment.
Sikri, J. These two appeals by special leave are directed against the judgment of the High Court of Judicature at Madras in a reference made to it by the Income tax Appellate Tribunal under section 66 1 of the Indian Income tax Act, 1922, hereinafter referred to as the Act.
