JUDGMENT

Santosh Hegde, J.-Two following two questions were referred to the High Court of Delhi by the Income Tax Appellate Tribunal (for short the tribunal ) in respect of assessment years 1977-78 and 1978-79:

"1. Whether on the facts and in the circumstances of the case, the Hon ble Tribunal was legally correct in holding that the annual letting value of the Club building is not assessable to income-tax under the head `Income from property ?

2. Whether on the facts and in the circumstances of the case, the Hon ble Tribunal was legally correct in holding that the principle of mutuality applies to the property income and accordingly it is not taxable income of the assessee?"

2. The High Court relying on Section 22 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) and following the judgment of Allahabad High Court in the case of C.I.T., U.P. v. Wheeler Club Limited1 and some observations of the Delhi High Court in the case of C.I.T., Delhi-II v. Delhi Gymkhana Club Ltd.2 answered the question in the negative and in favour of the Department. Against the said judgment of the High Court dated 11.11.1992, the appellant has preferred the