Item 38 of that notification reads as under: "The following classes of income shall be exempt from the tax payable under the said Act: (38) Such part of the income in respect of which the said tax is payable under the head 'property ' as is equal to the amount of rent payable for a year but not paid by a tenant of the assessee and so proved to be lost and irre coverable, where (a) the tenancy is bona fide; (b) the defaulting tenant has vacated or steps have been taken to compel him to vacate the property; (c) the defaulting tenant is not in occupation of any other property of the assessee; (d) the assessee has taken all reasonable steps to substitute legal proceedings for the recovery of the unpaid rent or satisfies the Income tax Officer that legal proceedings would be useless; and 205 (e) the annual value of the property to which the unpaid rent relates has been included in the assessee 's income of the year during.