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Assessment of an assessee who takes a long lease of land from the Government, erects buildings with permission, and has the right to remove buildings upon lease termination. Analysis: The case involved the Madras Cricket Club, which occupied land under a Government Order in 1865. In 1925, they obtained a long lease from the Government, allowing the removal of buildings upon lease termination. The assessees were assessed for profits and gains as well as 'property' under Section 9. The primary contention was whether the assessees were the owners of the buildings on the land. In India, unlike England, a person who builds on another's land retains ownership. The Court held that the assessees remained the owners of the buildings despite the change in tenure from a government license to a landlord-tenant relationship. The next issue was whether the income-tax authorities could assess the assessees as owners of the buildings. The argument was that the section required assessment only of full owners of buildings, implying ownership of the land as well. The Court disagreed, stating that Section 9(1) mandated tax payment by an assessee for the annual value of property, including buildings, of which they are the owner. As the Madras Cricket Club owned the buildings, they were liable for assessment under Section 9. The Court concluded that the assessees were assessable for the annual value of the buildings under Section 9 of the Act, rejecting the contention that full ownership of the land was necessary for assessment. The judgment was delivered by BEASLEY, C.J., with agreement from RAMESAM, J., and SUNDARAM CHETTY, J. The reference was answered accordingly, and costs were awarded to the Commissioner of Income Tax.
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