TaxTMI 
TaxTMI 
1988 (3) TMI 130
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....n by the District Valuation Officer at Rs. 4,23,700. 2. That on the facts and circumstances of the case the learned CWT(A) had legally erred in directing the WTO to make a reference under s. 16A for the valuation of jewellery when the WTO has chosen to make an arbitrary estimate against the valuation returned by the assessee duly supported by the Approved Valuer's certificate. 3. That on the facts and circumstances of the case the learned CWT(A) legally erred in holding that the arrears of Income-tax and wealth-tax liabilities will not be allowed under s. 2(m)(iii) if the same are disputed on the valuation date". 3. We have heard the parties at length. Orders of learned lower authorities have been duly noted. On the question of valuation....
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....s it may, when the return is high, the multiplier has to go down because the rate of interest has to be capitalised and that is the natural inference. That apart, in the case of - "Sushil Ansal vs. CIT, Delhi-III (1986) 58 CTR (Del) 27 : (1986) 160 ITR 308 (Del), their Lordships were seized of a issue--as to whether when an assessee owns a flat in a multi-storeyed building and when he had since paid full value for flats and taken possession of, but transfer deed has not been executed, the rentals in terms of income from flats are to be assessed how--whether income from "Other Sources" or income from "house property". The Hon'ble jurisdictional High Court held that the rental income was assessable as income from "other sources". The head not....
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....ficient to confer on the assessee the right of ownership in the flats. Since the head of "Income from house property" covered only cases of assessment of an owner of building and lands appurtenant thereto and not all cases of income from house property, the assessment of persons other than owners did not fall under s. 22 and should be made under s. 56. The income of the assessee had to be assessed under the head "Income from other sources" and the assessment was properly completed by the ITO. Sections 22 and 23 envisage a tax on the owner of the property but at the same time disassociate the tax from the actual derivation or enjoyment of the income from the property. The tax under the head "Income from house property" is in respect of the ....
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....movable property. The Hon'ble Supreme Court in the above decision has held that an immovable property vests in a person, i.e. he becomes the legal ownership only after a conveyance deed has been duly executed and registered in his favour under the provisions of Indian Registration Act and till such time it has not been done, an immovable property cannot be said to be belonging to the said person. The Hon'ble Delhi High Court having held that income from flat in a multi-storeyed building is assessable under the head of "Income from other sources", the implications thereof are that the income is not from "property" and rightly so, since the assessee does not own any immovable property as a legal owner. The other implication and safe inference....