https://www.taxtmi.com/caselaws?id=308578 Rental income from a building allotted to shareholders could not be assessed in the company's hands where the company's memorandum and articles authorised allotment of constructed area, specific portions were allotted by resolution, and the shareholders received and reported the rent. Section 27(iii) of the Income-tax Act, 1961 creates a deeming fiction treating the allottee-member as the owner for tax purposes, and that fiction operates independently of the requirement of a registered conveyance under transfer law. On the facts, the company was only an ostensible owner and the lease was effectively on behalf of the shareholders, so the income was taxable in their hands, not the company's. en-us Tue, 25 Sep 2012 00:00:00 +0530 Wed, 05 Jul 2023 15:22:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=308578 Rental income from a building allotted to shareholders could not be assessed in the company's hands where the company's memorandum and articles authorised allotment of constructed area, specific portions were allotted by resolution, and the shareholders received and reported the rent. Section 27(iii) of the Income-tax Act, 1961 creates a deeming fiction treating the allottee-member as the owner for tax purposes, and that fiction operates independently of the requirement of a registered conveyance under transfer law. On the facts, the company was only an ostensible owner and the lease was effectively on behalf of the shareholders, so the income was taxable in their hands, not the company's. Case-Laws Income Tax Tue, 25 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=308578