Legal ownership governs house property tax: without registered conveyance, the transferor remains taxable on the income.

Income from house property is assessable in the hands of the legal owner, because section 9 fastens tax on ownership in law rather than mere factual enjoyment or receipt of consideration. Payment of price, delivery of possession, entries in the purchasers' books, or continued use by the purchasers do not by themselves divest title where no duly stamped and registered conveyance has been executed. The doctrine of part performance does not displace legal ownership for income-tax assessment on these facts, and special rulings on evacuee property or residual beneficial interest remain confined to their statutory settings. The operative rule is that title must be legally transferred or statutorily vested away before the assessee ceases to be taxable as owner.

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Issues: Whether income from immovable properties continued to be assessable in the hands of the assessee as legal owner notwithstanding payment of consideration, delivery of possession and entries in the purchasers' books.

Analysis: Under section 9 of the Indian Income-tax Act, 1922, the charge is on the owner of house property and the concept applied is that of ownership in law, not merely factual enjoyment or receipt of income. Transfer of immovable property of the relevant value can be effected only by a duly stamped and registered instrument, and neither resolutions of the purchasing companies nor payment of consideration nor continued user by the companies could by themselves divest the assessee of title. The authorities on evacuee property and residual beneficial interest were confined to their special statutory context and did not displace the settled rule that, in the absence of a registered conveyance, ownership remains with the transferor. The doctrine of part performance did not furnish a basis to ignore the legal title for income-tax assessment on these facts.

Conclusion: The assessee remained the owner for purposes of section 9, and the income from the properties was taxable in his hands.

Ratio Decidendi: For assessment of income from house property, tax is attracted to the legal owner unless ownership is legally divested by a valid registered conveyance or by a statutory vesting that removes the owner's title.

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