Rental income must follow ascertainable ownership shares, not an equal presumption, when contributions are clearly proved.

Rental income from immovable property is to be apportioned according to the parties' respective beneficial interests where those interests are definite and ascertainable from their separate investments. An equal-share presumption applies only when the shares cannot be proved; here, the evidence showed clear contribution ratios, so the property could not be treated as owned in equal one-fourth shares. On those facts, section 26 of the Income-tax Act applied and the assessment based on proportionate contribution was upheld, rejecting equal division of the rental income.

---

---

Issues: Whether the rental income from the house property was liable to be assessed in equal one-fourth shares among the family members or in proportion to the respective investment made by each of them.

Analysis: The property was acquired and constructed by the parties through separate investments, and the evidence on record showed clear and specific shares of contribution by each person. Section 45 of the Transfer of Property Act applies where consideration is paid from common or separate funds and, in the absence of a contrary contract, the beneficial interest follows the respective shares of contribution; only where no evidence of the shares exists is an equal interest presumed. The case relied upon by the assessee was distinguished because it dealt with an unspecified share in a sale deed, whereas here the investments were ascertainable and the lease deed did not establish equal ownership shares. On those facts, section 26 of the Income-tax Act was attracted because the respective shares were definite and ascertainable.

Conclusion: The assessee was not entitled to equal division of the rental income, and the income had to be apportioned according to the respective investments. The addition made by the Assessing Officer was restored, in favour of the Revenue.

Final Conclusion: The appellate order granting equal one-fourth treatment was reversed and the assessment based on proportionate contribution was upheld.

Ratio Decidendi: Where the beneficial interests in immovable property are clearly ascertainable from the respective investments of the parties, rental income is to be assessed in proportion to those interests and not on an equal-share presumption.

---