9911796707
TMI Blog1983 (11) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the assessee has let out of Maharashtra Stage Electricity Board. The assessee claimed that the rent/licence fee should be treated as her income from house property. The ITO, however has treated that same as income from undisclosed source as was done in the earlier year. The AAC has considered this ground in paras 1 and 2 of this impugned order. He has held that in order to be entitled to be assessee as income from house property, the assessee must be the owner i.e., the person who can exercise the rights of the owner, not on behalf of the owner but in her own right., According to him this means that only legal owners could be assessee in respect of house property as income from house property and not the beneficial owners. he, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative, could be assessed as income from other sources. 3. We have heard the parties. There cannot perhaps be any dispute that income can be assessed as income from house property only if the assessee is the owner of the house property and not otherwise. The question arises whether in the case like the one before us, the assessee is or can be termed as an owner. In this context, is pertinent to mention that a similar issue up for consideration before a Special Bench of Tribunal at Delhi in the case of ITO vs. R. R. Seheney Ors. (1983) 2 ITD 207 (Del) (SB). The facts in that case were that a private limited company, to whom co-owners of a piece of land had transferred their entire right, title and interest in the lands, entered i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is whether the assessee could be treated as owners' within the meaning of s. 22 Though ownership does not pass unless there is a vailed conveyance deed duly registered, but the assessee had, under the terms and conditions of the agreement, acquired an absolute right of enjoyment and possession of the flats allowed to them. The mere fact that the company was burdened with some common obligations and owned the land on which the superstructure was built, would not make it the owners of the flats. The obligations imposed on the company were merely for the purpose of effective and efficient use of the building for the common benefit of all the flat owners, which is essential in the context of present day living is of recent origin as this was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the IT Act, 1961, and rules made thereunder". The ITO has disallowed the claim observing that the payment of Rs. 356 relates to asst. yr. 1973-74 and that the amount of Rs. 1,406 has been paid to the Government of India under Voluntary disclosure Scheme. It was submitted before the AAC that these two amounts totalling to Rs. 1,762 were paid as interest to the Central Government for delayed payment of taxes under the Voluntary Disclosure Scheme 1975 and that there oral the amount was allowable as reduction under/s. 80V of the IT Act, 1961, or reasons given in para 5 of his order, the AAC had held that s. 80V envisages allowance of interest paid by an assessee on money borrowed for payment or any tax due. The object of this pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to the facts of the case. Accordingly, we hold that the assessee is entitled to succeed in its claim for deduction of Rs. 3,406 as interest paid for delayed payment of tax under the olutary Disclosure Scheme. The remaining amount of Rs. 256, it may be stated, is interest paid under/s. 217 (1) (a) which is admittedly different in nature. 7. The last ground in this appeal is: "3. On the facts and circumstances of the case the learned authorities below erred in disallowing a sum of Rs. 656.88 being interest paid to M/s Textile Processing Corporation which is contrary to the provisions of the IT Act, 1961 and the ruled made thereunder." The assessee claimed to have paid this amount by way of interest of M/s Textile processing Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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