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2006 (8) TMI 130

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..... lawati Tandon after 1975 when the name of Smt. Vimlawati Tandon was entered in the members' register of the society in place of her husband - as the assessee ceased to be the member of the society in the year 1975 and in his place Smt. Vimlawati Tandon became a member of the society, the house property belongs to Smt. Vimlawati Tandon and not to the assessee. - Tribunal was justified in holding that the income from the house property was assessable in the hands of the wife of the assessee - - - - - Dated:- 8-8-2006 - Judge(s) : R. K. AGRAWAL., VIKRAM NATH. JUDGMENT The judgment of the court was delivered by R.K. Agrawal J.-The Income-tax Appellate Tribunal, Allahabad in Income-tax Reference No. 177 of 1989, which relates to the a .....

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..... r by the society constructed a house during the year 1957-58. The construction was made with the permission of the society. In the year 1975 he moved an application before the society for substituting the name of his wife-Smt. Vimlawati Tandon, in the record of the society in his place. After observing the necessary formalities, the name of Smt. Vimlawati Tandon was substituted in place of the applicant. Thereafter, he received a sum of Rs. 60,000 by cheque on March 30, 1979, from Smt. Vimlawati Tandon towards the investment made and in getting the allotment of the land and the construction of the house by way of reimbursement/compensation. The society has executed a registered sale deed in respect of the plot in question in favour of Smt. .....

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..... struction of the house and other incidental expenses by cheque. According to him, in view of section 22 of the Act, under law Smt. Vimlawati Tandon would be the owner of the plot and the house property, 64, Lajpat Nagar, Varanasi and the income from it cannot be added in his hands. He has relied upon the following decisions in support of his submissions: (1) CIT v. Podar Cement P. Ltd. [1997] 226 ITR 625 (SC); and (2) Nawab Mir Barkat Ali Khan v. CWT [1997] 226 ITR 654 (AP)[FB]. Sri R.K. Upadhyay on the other hand submitted that the assessee, namely, Sri Ram Saran Das Tandon would be treated to be the owner of the house property, 64, Lajpat Nagar, Varanasi till such time it is transferred by way of registered sale deed and the said pr .....

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..... o be the owner of that building or part thereof, the assessee was not the member of the co-operative society during the relevant assessment" years, membership having been transferred to his wife, in his place, the assessee cannot be held to be the owner of the house property No. 64, Lajpat Nagar, Varanasi. We further find that in the case of Podar Cement P. Ltd. [1997] 226 ITR 625 the apex court has held as under: "... though under the common law 'owner' means a person who has got valid title legally conveyed to him after complying with the requirements of law such as the Transfer of Property Act, the Registration Act, etc., in the context of section 22 of the Income-tax Act, 1961, having regard to the ground realities and further havin .....

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