9911796707
TMI Blog1989 (11) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... olved are 1970-71, 1971-72, 1976-77 and 1977-78 for which the relevant accounting periods ended on December 31, 1969, December 31, 1970, December 31, 1975, and December 31, 1976, respectively. The facts of the case as they appear from the statement of case are as follows: For the assessment years 1970-71, the Income-tax Officer noted that the income was shown by the assessee at Rs. 66,954 from property only. Before the Income-tax Officer, a reference was made to the decision of the Tribunal in Income-tax Appeals Nos. 3275 to 3277/(Cal) of 1971-72, in which it was held that the income from house property was not assessable in the hands of the assessee-company. The Income-tax Officer took note of another decision of the Tribunal in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (Appeals) who, by a consolidated order, sustained the order of the Income-tax Officer. The Commissioner (Appeals) considered the decision of the Tribunal and the decision of the Hon'ble Calcutta High Court in CIT v. Ganga Properties Ltd. [1970] 77 ITR 637. He noted that, in the present appeals, the issue was limited to the taxing of the incomes from vacant lands and not the house properties . He noted that the Tribunal, in its order dated September 4, 1972, in respect of the assessment year 1962-63, has observed that the income to be taxed from rental receipt from vacant land would have to be dealt with on a different footing. He also referred to the provisions of section 56 of the Act which, according to him, is wide in its sco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, for the purposes of assessing income from other sources ownership of the assets or income thereof was not a prerequisite. It found that the income from the lands were noted in the books of account of the company. It held that the income has been correctly included and computed as income from other sources and that the individual members of the family allowed the company to use the lands for its own benefit along with the, house properties, and in consideration of the same, certain shares were issued to the individual members. It also held that, as far as the income from the vacant lands was concerned, the same was to be assessed as income from other sources in the hands of the company. The Tribunal found no error in the order of the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner of the property. The question is that income of every kind which is not excluded from the total income under the Act shall be chargeable to income-tax under the head " Income from other sources ". In the facts and circumstances of this case, even though no formal deed of conveyance was executed, the provisions of section 53A of the Transfer of Property Act, 1882, are to be noted which provides that, under such circumstances, the doctrine of partial performance would apply which debars the right to the property of the owner after the property is transferred for consideration. In our view, the Tribunal has correctly decided this point that the income of the assessee from the said property is chargeable under section 56 of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable to the facts and circumstances of this case. The next decision cited is the decision of the Supreme Court in Provat Kumar Mitter v. CIT [1961] 41 ITR 624. In that case, the assessee who was a registered holder of 500 ordinary shares in a limited company assigned to his wife by way of a deed of settlement, the right, title and interest to all dividends and sums of money which might be declared or which may be due and payable in respect of those shares for the term of her natural life and covenanted to deliver and endorse over to her any dividend warrant or other document of title to such dividends or sums of money and to instruct the company to pay such dividends and sums of money to her. In that case, the Supreme Court held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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