Commissioner of Income Tax vs Smt. Wiran Bai Jaggi

D.K. Jain, J.

At the instance of the assessed the Income Tax Appellate Tribunal, Delhi Bench ''B'' Delhi (hereinafter referred to as the Tribunal) has referred u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as ''the Act'') the following question, arising out of ITA. No. 2635/Del/1984 for the assessment year 1979-80, for our opinion :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that rental income from flat in a multi-storeyed building is assessable in the hands of the assessed under the head ''Income from house property'' even though the assessed had not acquired legal title to the ownership of the said property through a registered sale deed in her favor?"

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.