1999 (8) TMI 63 - HC - Income Tax

Tribunal rules possession /= ownership in tax case, income from sources not property.

Smt. Mandira Mukherjee Versus Commissioner Of Income-Tax

Smt. Mandira Mukherjee Versus Commissioner Of Income-Tax - [1999] 239 ITR 838, 157 CTR 293 Issues:1. Whether the rent received by the assessee from the house property is assessable as income from other sources or income from house propertyRs.Analysis:The case involved a question regarding the assessment of rental income received by the assessee from a property. The deed of settlement made by the grandfather of the assessee stated that the property would ultimately vest in another individual, not the assessee. The Income-tax Officer initially assessed the income as 'income from other sources' despite the assessee claiming it as income from the house property. The Commissioner of Income-tax (Appeals) supported the assessee's claim based on an affidavit filed by the grandfather. However, the Tribunal found that since the assessee was not the owner of the property, the rental income could not be assessed as income from house property. The Tribunal upheld the Income-tax Officer's decision to tax the income as 'income from other sources.'The Tribunal emphasized that possession alone does not confer ownership rights. The Tribunal noted that the settlement deed did not transfer the land to the assessee, and the property was to vest in someone else after certain obligations were met. As there was no evidence establishing the assessee as the owner of the property, the Tribunal concluded that the rental income could not be considered income from the house property. Therefore, the Tribunal affirmed the Income-tax Officer's assessment of the income as 'income from other sources.'In conclusion, the Tribunal ruled in favor of the Revenue and against the assessee, disposing of the reference application. The judgment highlighted the importance of ownership in determining the nature of income from a property for tax assessment purposes.