Transfer of land includes existing building unless a contrary intention appears; post-gift property income belongs to the donee.

A transfer of a plot on which a building already stands ordinarily carries the transferor's interest in the superstructure as well as the land, because s. 8 of the Transfer of Property Act passes all transferable interests and their legal incidents, and buildings are treated as immovable property attached to the earth. On the deed read as a whole, no express or necessarily implied reservation of the house was found, and surrounding circumstances were insufficient to displace the statutory rule. The gift therefore covered both the land and the building, with the post-gift income from the property assessable in the donee's hands.

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Issues: Whether the gift of a plot of land on which a building already stood transferred only the land or also the superstructure, and consequently whether the entire post-gift income from the property was taxable in the donee's hands.

Analysis: Section 8 of the Transfer of Property Act operates to pass to the transferee all the interest which the transferor is capable of transferring, together with the legal incidents of the property, including things attached to the earth. Section 3 defines buildings as immovable property attached to the earth. Therefore, when a plot is conveyed and a building already exists on it, the transfer ordinarily carries the donor's interest in the building as well, unless a different intention is expressed or necessarily implied. On the deed read as a whole, no reservation of the house was expressed or implied, and the surrounding circumstances relied on by the assessee were insufficient to displace the statutory rule.

Conclusion: The gift covered both the land and the building standing thereon, and the entire income from the property after the gift was assessable in the donee's hands.

Ratio Decidendi: In the absence of an expressed or necessarily implied contrary intention, a transfer of land passes the transferor's interest in an existing building on that land by virtue of the statutory incidents of transfer.

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