The Income-tax Appellate Tribunal has given this ruling in respect of a case pertaining to Navi Mumbai based leasing company. This will have an impact as many restaurants, shop owners and even house owners had either renegotiated rents or had defaulted on it during Covid pandemic.
MUMBAI: In what could become an important aspect at a time when several renting contracts are being renegotiated and tenants are defaulting on rent, an Income-tax Appellate Tribunal has ruled that tax is only applicable when the rent income is actually received.
The case pertains to a Navi Mumbai based leasing company that is into the business of leasing apartments and commercial properties.
