True ownership governs house-property taxation where a building is jointly owned, even without registered conveyance.

For section 22 of the Income-tax Act, 1961, income from house property is taxable according to true ownership, meaning the person who can exercise ownership rights in his own right. Although the land stood in the assessee's name, evidence showed that the superstructure of Park View Hotel was constructed with equal contributions from the assessee and his two brothers. The absence of a registered conveyance did not prevent recognition of factual ownership of the building, and section 53A of the Transfer of Property Act could not establish title without a written agreement. The assessee was therefore not the sole owner; the superstructure was jointly owned in one-third shares, and only his share of the income was taxable.

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Issues: Whether the entire income from Park View Hotel was assessable in the assessee's hands under section 22 of the Income-tax Act, 1961, or whether the assessee and his brothers were joint owners of the superstructure so that only the assessee's share could be taxed.

Analysis: The plot stood in the assessee's name and he remained the owner of the land. However, the evidence showed that the cost of construction was borne in equal proportion by the assessee and his two brothers, and the superstructure was raised with those shared funds. For the purpose of section 22, the relevant owner is the person who can exercise the rights of ownership in his own right. Absolute title by registered conveyance is not indispensable for assessing income from house property where the factual ownership of the superstructure is otherwise established. Section 53A of the Transfer of Property Act could not assist in proving title in the absence of any written agreement, but that did not alter the conclusion that the building was jointly owned.

Conclusion: The assessee was not the sole owner of the superstructure; he and his two brothers were joint owners with one-third share each, and the entire income from the property was not assessable in the assessee's hands.

Final Conclusion: The reference was answered against the Revenue on the ownership issue, and the house-property income was held taxable only to the extent of the assessee's share.

Ratio Decidendi: For section 22 of the Income-tax Act, 1961, ownership depends on the real and enforceable right to exercise ownership in one's own right, and income from house property must be taxed according to the true ownership of the property even in the absence of a registered conveyance.

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