Madhu Aggarwal vs Commissioner of Income Tax

In this reference u/s 256(1) of the income tax Act, 1961, the following two questions have been referred for our opinion: -

(1) Whether, on the facts and in the circumstances of the case and on a true and correct interpretation of the Section 22, the Tribunal was right in law in holding that the assessee could not be treated as ''owner of the flat in the multi storeyed building known as Ashoka Estate?

(2) Whether, on the facts and in the circumstances of the case and in law the Tribunal was right in law in holding that the income enjoyed by the assessee from these flats would be assessed under the head ''income from other sources'' and not under the head ''income from house property"?

In view of the decision of the Supreme Court in CIT v. Podar Cement (P.) Ltd [1997] 226 ITR 625 1, the assessee is entitled to be treated as the owner of the flat in question and the income derived therefrom is to be treated as income from house property.

Following the above decision, we answer both the questions in the negative, in favour of the assessee and against the revenue. The reference is disposed of accordingly.