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TMI Blog1990 (10) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of consideration is stated to have been received by her in November 1980 and the possession of the property was also stated to have been given to the agreement holder in November 1980. The property was, however, not transferred by registered document till April 1982. 3. For the assessment years 1981-82 and 1982-83, the Income-tax Officer held that the assessee continued to be the legal owner of the property since there was no transfer of the property by a registered document to the vendee during the previous years relating to the above assessment years. Rejecting the assessee's contention that the property income is assessable in her hands only up to October 1980 when the possession of the property was handed over to the vendee, the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in CIT v. Ganga Properties Ltd. [1970] 77 ITR 637, and the Privy Council in Chhatra Kumari Devi v. Mohan Bikram Shah AIR 1931 PC 196. He also points out that the Andhra Pradesh High Court in the case of CIT v. Nawab Mir Barkat Ali Khan 1974 Tax LR 90, held that even in cases where the property has been transferred to other persons on receipt of consideration, in the absence of formal deed of conveyance, the assessee will still be assessable in respect of the income from the property as he continues to be the legal owner of the property. This view was once again reiterated by the Andhra Pradesh High Court in the case of Nawab Mir Barkath Ali Khan v. CIT [1988] 171 ITR 541/36 Taxman 317. The decision of the Andhra Pradesh High Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deed and he is entitled to depreciation on the building since the building was owned and used by it for the purpose of business, he claims that the Appellate Assistant Commissioner's order is correct and does not call for any interference. 7. We have considered the rival submissions. Income from property under section 22 has to be assessed in the hands of the owner of the property. The term 'owner' used in the above section refers to legal owner and not to beneficial owner. In the case of an immovable property, the legal ownership can be transferred only by a registered document and not otherwise. There is no dispute in this case that the property was transferred to the vendee only subsequent to the previous year relevant to the two asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the case of Sahney Steel Press Works (P.) Ltd. and reiterated its earlier view in the case of Nawab Mir Barkat Ali Khan. In view of this later decision of the Andhra Pradesh High Court in the case of Nawab Mir Barkath Ali Khan, which is a later one and which also considered the earlier decision in the case of Sahney Steel Press Works (P.) Ltd., we are of the opinion that we should follow the later decision of the Andhra Pradesh High Court in Nawab Mir Barkath Ali Khan's case. 8. We may also point out that the Calcutta High Court in the case of S.B. [House Land] (P.) Ltd. v. CIT [1979] 119 ITR 785, held that the decision of the Supreme Court in the case of R.B. Jodha Mal Kuthiala, was given on the facts and in the circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT v. Trustees of H.E.H. the Nizam's Miscellaneous Trust [1986] 160 ITR 253, the Andhra Pradesh High Court had an occasion to consider the question whether the rental income received by the assessee-trust during the period from the date on which it took over possession on payment of consideration up to the date of obtaining the registered conveyance deed, was assessable as income from property or income from other sources. It was held that the legal ownership of the property remained with the late Nizam till February 28, 1972, i.e. the date when the registered document was executed. On that count, it was held that the rental income from the property could not be assessed to tax under sec. 22 of the Income-tax Act, 1961. 10. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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