Unregistered transfer of superstructure leaves legal ownership unchanged, so rental income remains taxable in the transferor's hands.

Rental income from a superstructure could be assessed in the assessee company's hands because the unregistered deed did not transfer legal title. The transfer of ownership of an immovable superstructure required compulsory registration, and without registration the assessee remained the legal owner. Section 53A of the Transfer of Property Act did not confer ownership on the transferee, and beneficial ownership was irrelevant for charge under section 22 of the Income-tax Act. Section 27(iiia) also did not apply to the assessment years concerned. The rental income was therefore includible in the assessee company's total income.

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Issues: Whether rental income from a superstructure purportedly sold under an unregistered deed could be assessed in the hands of the assessee company.

Analysis: The agreement sought to transfer ownership of an immovable superstructure, which required compulsory registration. As the sale deed was not registered, title did not pass to the transferee and the assessee company continued to remain the legal owner. The doctrine of part performance under section 53A of the Transfer of Property Act did not confer ownership on the transferee, and beneficial ownership was not relevant for the charge under section 22 of the Income-tax Act. The later provision in section 27(iiia) of the Income-tax Act could not apply to the assessment years in question.

Conclusion: The rental income was rightly includible in the assessee company's total income.

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