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TMI Blog2009 (12) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 3. In all the appeals the issue involved is regarding upholding of rental income as income from other sources and disallowance of deduction u/s 24 of the Income Tax Act. The learned representative of both the parties mainly argued in ITA No.2387/Ahd/2009 and submitted that in all the appeals the issue is same; therefore, the order in this case would be followed in other appeals also. 4. On ground No.2 the assessee challenged orders of learned CIT(A) in upholding the rental income of ₹ 22,57,500/- as income from other sources and not income from house property. On ground No.3 the assessee challenged disallowance of deduction u/s 24 of the Income Tax Act. 5. Briefly stated, the facts of the case are that on verification of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontentions were raised. The learned CIT(A) rejected the claim of the assessee for deemed ownership of the property8 u/s 269 UA (f) of the Income Tax Act. The learned CIT(A) noted that since the tenancy could be terminated at any time, therefore, the assessee did not fulfill the conditions of the above section and, therefore, income has rightly been treated as income from other sources against the assessee. The assessee does not qualify as deemed owner of the property. The appeal of the assessee was accordingly dismissed. 6. The learned Counsel for the assessee reiterated the submissions made before the authorities below and filed copy of the agreement of leave and license executed on 25th September 1998 and submitted that through this ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wner of the property; therefore, income was rightly treated as income from other sources. The learned Counsel for the assessee in the rejoinder submitted that the learned CIT(A) has gone beyond the provisions of law which is not permissible under the law in rejecting the claim of the assessee. 8. We have considered the rival submissions and material available on record. Section 22 of the Income Tax Act provides as under: The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er other than such portion of such property as he may occupy for the purpose of any business of profession carried on by him, by profit of which are chargeable to income tax, shall be chargeable to income tax under the head income from property. Section 27 (iiib) of the Income Tax Act provides deemed ownership of the building when such person acquires any right excluding any right by way of lease from month to month or a period not exceeding one year. Therefore, with respect to any building or part thereof by virtue of any such transactions as is referred to in clause (f) of Section 269 UA shall be deemed to be owner of that building or part thereof. Section 269 UA (f) (i) of the Income Tax provides definition of transfer in relation to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Easement Act as a right to do or continue to do in or upon immovable property of the guarantor something which would be in the absence of such right be unlawful and such right does not amount to an easement or interest in the property. The distinction between licence and lease is marked in the way that for licence does not create any estate or interest in the property to which it relates and that licensee is not entitled to notice to quit before eviction. It is therefore, clear that in the case of lease there is a creation of right to enjoy the property but licence is not assignable and no interest is created in the property. Section 107 of the Transfer of Property Act provides that a lease of immovable property from year to year, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property. Since the leave and license agreement are not used in the above provisions on which learned Counsel for the assessee heavily relied upon, therefore, the above provisions would not be attracted in the case of the assessee so as to qualify him to become deemed owner of the property in question. The learned Counsel for the assessee relied upon the order of the Tribunal in the case of Premavati Estates Investments (P) Ltd. (supra) in which the facts are that the assessee has taken the premises on lease from Basantkumar Somani Memorial Trust on lease rent per month. In this premises the Tribunal confirmed the orders of the authorities below that the assessee was deemed owner of the building in question as per section 22 read with sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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