COMMISSIONER OF INCOME-TAX, LUCKNOW vs MADHO PD. JATIA

The Supreme Court held that under Section 9 of the Indian Income Tax Act, 1922, an assessee can claim a deduction for irrecoverable rent in subsequent assessment years, provided the total deduction does not exceed the annual rent payable. The Court clarified that the exemption granted under item 38 of Notification No. 878F allows for deductions in multiple years, contrary to the Income Tax Authorities' stance that it could only be claimed once. The appeal was dismissed, affirming the High Court's decision in favor of the assessee.