Section 53A possession does not transfer title; transferor remains assessable owner under agricultural income-tax law.

Parting with possession under an agreement to sell does not by itself divest the transferor of legal title under the Tamil Nadu Agricultural Income-tax Act. Section 53A of the Transfer of Property Act, 1882, gives the transferee only a defensive right in possession and operates as a shield, not as a transfer of ownership. Because no transfer of interest in law had occurred, the transferor remained the owner or holder for assessment purposes and section 23 of the Act did not apply. The assessment was therefore sustained.

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Issues: Whether, on parting with possession under an agreement to sell, the transferor ceased to be the owner or holder of the land for the purposes of the Tamil Nadu Agricultural Income-tax Act, and whether section 53A of the Transfer of Property Act, 1882, divested title so as to exclude the transferor from assessment.

Analysis: The expression "person" under section 2(q) of the Tamil Nadu Agricultural Income-tax Act, V of 1955, covers one owning or holding property, while section 2(nn) defines "to hold" as possession and enjoyment as owner or in specified capacities. Section 23 of the Act contemplates assessment of transferor and transferee only where a transfer of interest has taken place in law. Section 53A of the Transfer of Property Act, 1882, confers only a defensive right on the transferee in possession; it operates as a shield against the transferor but does not create title or complete a transfer of ownership. Part performance and delivery of possession under an agreement to sell therefore do not divest the transferor of legal title.

Conclusion: The petitioner remained the owner within the meaning of the Act, no transfer of title had taken place, and section 23 had no application. The challenge to the assessment failed.

Ratio Decidendi: Part performance under section 53A of the Transfer of Property Act, 1882, is only a protective defence for the transferee in possession and does not transfer title or extinguish the transferor's ownership for the purposes of tax liability.

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