tax implication on Litigation in ownership

[Vivek Davanam]

The assessee (a partner of the firm)  paid to bank on the basis of Auction cum Sale agreement towards the property in which the firm is the tenant. where as the assessee did not got registration since the owner of the property had sued the bank against Auction cum sale.

till now the property is not registered in the name of the assessee due to the matter is in court of Law.

whether the assessee(partner of the firm) is the owner?whether this income is taxed under houseproperty or under other source - since he is not the registered owner has only possession of the property?

AI Summary

Property Income Taxed Under Section 22: Registration Not Required if Entitled to Income Despite Legal Disputes An individual queried about the tax implications of property ownership when the property is under litigation and not registered in their name. The individual, a partner in a firm, paid for a property through an auction but faced legal challenges from the original owner. The question was whether the income from this property should be taxed as income from house property or another source, given the lack of registration. The response clarified that under Section 22 of the Income-tax Act, registration is not necessary for taxing income as house property income if the individual is entitled to receive income from it.