Commissioner of Income Tax vs Diljinder Shivdayal Singh

At the instance of the assessed the Income Tax Appellate Tribunal Delhi Bench ''C'', Delhi (for short the Tribunal) has referred u/s 256(1) of the Income Tax Act, 1961 (for short the Act) the following question, arising out of ITA No. 5180/Del/1984 for the asst. yr. 1980-81, for our opinion.

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the rental income from the house property in question was assessable in the hands of the assessed under the head ''Income from house property'' and not as ''Income from other sources ? "

Since in our opinion answer to the question stands concluded by the decision of the Supreme Court in Commissioner of Income Tax, Bombay etc. Vs. M/s. Podar Cement Pvt. Ltd. etc., , it is not necessary to state the facts. In the said decision it has been held that for the purpose of Section 22 of the Act, the requirement of registration of sale deed is not warranted. It is observed that having regard to the ground realities and the object of the Act, namely, to tax the income, "owner" is a person who is entitled to receive income from the property in his own right. In other words, what has been held is that if the purchaser has been put in possession of the property on his paying the full consideration, he can be treated as "owner" for the purpose of Section 22 of the Act, even though no registered document as required u/s 54 of the Transfer of Property Act, has been executed in his favor.

In view of the said authoritative pronouncement, question referred, is answered in the affirmative i.e., in favor of the assessed and against the Revenue.

The reference stands disposed of accordingly