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Issues:
1. Whether the income from the property should be included in the total income of the assessee when there is an agreement for sale but final conveyance has not been made. 2. Whether the assessee ceased to be the owner of the property under the given circumstances. Analysis: 1. The assessee, the owner of a building with tenants, entered into an agreement for sale of the property in 1971 but final conveyance was pending. The assessee argued that as he had stopped collecting rents and the property was under an agreement for sale, the income should not be included in his total income. The Income Tax Officer (ITO) included the income, citing a Supreme Court decision. The AAC upheld the decision, referring to a Bombay High Court judgment. The assessee appealed to the Tribunal, citing various court decisions. The Tribunal noted that under similar circumstances, the Bombay High Court had held that the vendor continued to be the owner until final conveyance. The Tribunal found that the AAC's decision was justified based on the law and dismissed the appeals. 2. The Tribunal considered the facts and relevant court decisions, including the Supreme Court and various High Courts. It noted that in cases where there is an agreement to sell a property but no registered sale deed, the vendor remains the owner until final conveyance. The Tribunal emphasized the importance of a registered sale deed when the property value exceeds a certain threshold. Relying on the Bombay High Court's clear pronouncement and previous decisions, the Tribunal concluded that the AAC's decision to include the income in the assessee's hands was correct. The appeals filed by the assessee were dismissed, affirming the AAC's decision and upholding the assessment of income from the property in the hands of the assessee.
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