2003 (1) TMI 52

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....er section 22 or "Income from business" under section 28 of the Act. The relevant facts lie in a narrow compass. The assessee is a private limited company. One of the directors of the company, Sri B.R. Kapanipathy, had taken certain extent of lands situate at Bangalore on a long-term lease of 36 years under a registered lease-deed dated December 20, 1972. He executed a registered deed of transfer in favour of the assessee-company transferring his leasehold rights. Subsequently, the assessee-company built a commercial complex on the said land and allotted the same to various parties and earned income therefrom. For the year 1985-86, the assessee filed its return of income on October 29 1985, showing loss of Rs. 1,28,652. The assessee f....

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....facts as obtained in the case and on review of earlier judgments on the point, a three-judge Bench of the Supreme Court in the case of CIT v. Podar Cement (P.) Ltd. [1997] 226 ITR 625 has held that: "We are conscious of the settled position that under the common law, 'owner' means a person who has got valid title legally conveyed to him after complying with the requirements of law such as the Transfer of Property Act, Registration Act, etc. But, in the context of section 22 of the Income-tax Act, having regard to the ground realities and further having regard to the object of the Income-tax Act, namely, 'to tax the income', we are of the view, 'owner' is a person who is entitled to receive income from the property in his own right." C....